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Government of Sri Lanka

NATIONAL EXPORT
STRATEGY OF
SRI LANK A  2018-2022
The National Export Strategy (NES) of Sri Lanka
is an official document of the Government of Sri Lanka

For any queries about the NES, please contact :

Ministry of Development Strategies and International Trade

Address: Level 30, West Tower, World Trade Centre, Colombo 01.
Phone : +94 (0) 112337629
Phone : +94 (0)112337627
E-mail : info@modsit.gov.lk

Sri Lanka Export Development Board

Address: No. 42 Nawam Mawatha, Colombo-02, Sri Lanka.


Phone : +94-11-230-0705 / 11
Phone : +94-11-230-0715
E-mail : nes@edb.gov.lk

The National Export Strategy (NES) of Sri Lanka was developed on the basis of the pro-
cess, methodology and technical assistance of the International Trade Centre (ITC) within
the framework of its Trade Development Strategy programme.

ITC is the joint agency of the World Trade Organization and the United Nations. As part of the
ITC mandate of fostering sustainable development through increased trade opportunities, the
Chief Economist and Export Strategy section offers a suite of trade-related strategy solutions
to maximize the development payoffs from trade. ITC-facilitated trade development strategies
and road maps are oriented to the trade objectives of a country or region and can be tailored
to high-level economic goals, specific development targets, or particular sectors.

Technical assistance for the design of this document was provided by Charles Roberge,
Alexandra Golovko, Olga Khomula, Paul Baker, Yuki Mitsuka, Dominik Berger and Chullante
Jayasuriya.

Financial support was provided by the European Union, as part of the ‘European Union –
Sri Lanka Trade Related Assistance : Increasing SMEs’ trade competitiveness in regional and
European Union markets’ project. The contents of this document can in no way be taken to
reflect the views of the European Union.

The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products,
and product brands does not imply the endorsement of ITC. This document has not been
formally edited by ITC.

The International Trade Centre ( ITC ) is the joint agency


of the World Trade Organization and the United Nations

Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland


Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland
Telephone: +41-22 730 0111
Fax: +41-22 733 4439
E-mail: itcreg@intracen.org
Internet: http://www.intracen.org

Layout : Jesús Alés (www.sputnix.es)


Government of Sri Lanka

NATIONAL EXPORT STRATEGY


OF SRI LANKA
2018-2022

Photo: (cc) jgmorard


[ ii ]

MESSAGE BY HIS EXCELLENCY


THE PRESIDENT OF SRI LANKA

The world economy has profoundly changed in recent years, presenting new
opportunities as well as challenges for Sri Lanka. The Government of Sri Lanka
is geared towards creating an enabling environment to strengthen the competi-
tiveness which is a key driver to achieve inclusive and sustainable growth of Sri
Lankan exporters.

Exports contribute substantially to the Gross Domestic Product ( GDP ) of Sri


Lanka which signifies that developing exports is an effective method to develop
the economy. Despite many constraints and challenges confronted by Sri Lankan
exporters, the resilience shown by them to sustain growth in exports is indeed
commendable.

Sri Lanka is a leading producer of many traditional and non-traditional products


in the world. However, recognizing the changing paradigm in the international
trade and Asia becoming the growth centre in the world economy, it is important
for the country to diversify its product basket with new and innovative products
to suit the fast changing pattern.

In line with the Government’s vision of “building of a sustainable Sri Lanka, where
everybody will share its dividends”, I strongly believe the National Export Strategy
( NES ) will support the strengthening of the livelihood of all stakeholders in the
export supply chain while creating increased wealth for the nation.

I sincerely appreciate the work of all the stakeholders who were involved in the
process of formulating the National Export Strategy ( NES ).

Maithripala Sirisena
President of Sri Lanka
[ iii ]

MESSAGE BY THE HONOURABLE


PRIME MINISTER OF SRI LANKA

A comprehensive National Export Strategy ( 2018 – 2022 ) will be launched to ad-


dress Sri Lanka’s growth constraints. This strategy will witness a transformation
in the economy, with a per capita of USD 5,000 per year, a million new job op-
portunities, Foreign Direct Investments of USD 5 billion and with USD 28 billion
export earnings by the year 2022. These intermediate targets of the Government’s
economic vision – Vision 2025 – will ultimately make Sri Lanka an upper - middle
income country.

Sri Lanka has a strong potential to enhance its external trade performance since
our brands are increasingly associated with high quality and ethical manufactur-
ing practices. In addition to the mature export sectors of apparel, tea, rubber
and coconut, exports of services such as ICT, tourism and logistics have grown
significantly in the last decade. These sectors have proven their ability to diversify
and access new market destinations.

The National Export Strategy ( NES ) focuses on re-engineering the processes of


reducing the cost of doing business and increasing enterprise competitiveness
for improved institutional coordination, streamlined administrative procedures
and digitisation of trade related processes. The strategy also considers the pri-
vate sector will lead the development of exports, critical for the development of
Sri Lanka.

The success of the NES relies on the ability of all public and private stakeholders
to coordinate activities, monitor progress and mobilise resources. It is crucial for
the public and private sectors to define the NES implementation modalities and
“Quick Win” activities to build momentum for implementation.

I am confident that the National Export Strategy will provide Sri Lanka with the
impetus and guidance to realise the country’s potential and drive the nation to-
wards achieving the target of USD 28 billion in export earnings by the year 2022.

Ranil Wickremesinghe
Prime Minister of Sri Lanka
[ iv ]

MESSAGE BY HONOURABLE MINISTER


OF DEVELOPMENT STRATEGIES
AND INTERNATIONAL TRADE

Economic development is an urgent priority of the Government of Sri Lanka. The


economic strategy presented in the “Vision 2025”, policy framework includes a
new approach to growth, based on the principles of a social market economy,
which will seek to foster innovation and entrepreneurship to facilitate skill-based
technological change as a driver of productivity and economic growth in the new
global economic landscape.

The Ministry of Development Strategies & International Trade is focused on


identifying and implementing policies that will create an enabling environment
for trade to realise US $ 27 bn. in export revenue by the year 2022. The National
Export Strategy ( NES ) intends to provide the necessary direction to facilitate
achieving key economic targets. The NES is a comprehensive document formu-
lated through extensive public, private stakeholder consultations and addresses
national issues of the policy and regulatory framework, export diversification,
innovation, market entry, compliance, and trade and logistics hub.

The NES consolidates national level findings and priorities into a coherent road-
map to achieve Sri Lanka’s export vision: “Sri Lanka an export hub, driven by
Innovation and Investment”. This vision is guided by four strategic objectives,
they are; creating a predictable and transparent policy and regulatory framework,
drive export diversification through innovation, strengthening emerging export
sectors by improving market entry and compliance capacities, and to be an
efficient trade and logistics hub.

The strategy consists of a Plan of Action for each sector and a framework to
monitor the implementation to reach the expected outcomes. My Ministry will
give the highest priority for the implementation of NES, based on the actions pro-
posed of which a few have already been included in the National Budget 2018.

I appreciate the commitment of all stakeholders in preparing the National Export


Strategy and take great pleasure in presenting this important document. I sin-
cerely believe that the NES will be a key guide in the future course of action
by all stakeholders when developing exports. Let us work together to realise a
better future for Sri Lanka with economic development at the forefront, through
increased export earnings by building capacity, facilitating advancement and
creating opportunities in the years to come.

Malik Samarawickrema
Minister of Development Strategies & International Trade
[v]

MESSAGE BY HONOURABLE STATE MINISTER


FOR INTERNATIONAL TRADE

I have great pleasure in sending this message for the occasion where the EDB,
together with the Ministry of Development Strategies & International Trade and
the private and public sector stakeholders with the technical assistance from
the International Trade Centre ( ITC ), Geneva, has formulated the National Export
Strategy ( NES ) for Sri Lanka. We all witness today, a long felt need of the country
becoming a reality.

As the National Export Strategy has been formulated with close consultation of
all the stakeholders, every aspect for developing exports including minute details
and concerns to be addressed to reach the country’s export goals have been
very carefully looked into in this process. I am very much happy to be associated
with the development process of NES as the Navigator and as a stakeholder.

Exports are the mainstay of the national economic prosperity, contributing


substantially to the GDP while generating foreign exchange earnings, resulting
greater asset utilization and job creation. When Sri Lanka’s exports are compared
with those from the rest of the world and particularly, from the countries in our
neighbourhood, it is observed that, in spite of many comparative advantages
present, there had not been, in the past, adequate progress in the field of exports
reflecting a decline in export contribution to the country’s GDP. The National
Export Strategy has been formulated to fast track the country’s export growth
harnessing all capabilities and resources of the country.

Having a strategy along would not produce tangible results. The implementation
on the lines recommended in the NES is of paramount importance to achieve
the set export objectives and it could only be achieved through concentrated, fo-
cused and committed efforts of all the stakeholders. As the Navigator of the NES,
a responsibility is incumbent upon me to make sure effective implementation.
I am happy to mention that the NES implementation is already in progress with
the establishment of sector specific Advisory Committees and the Government
has recognized the importance of NES and budget allocations have been made
for the identified activities of the priority sectors in the National Budget 2018.

I convey my gratitude to all stakeholders for their participation and providing


enormous contribution in the NES formulation process with their expertise and
particularly, the ITC team, for the guidance and the technical support extended
in developing the NES.

Sujeewa Senasinghe
State Minister of International Trade
[ vi ]

JOINT MESSAGE BY THE PRIVATE SECTOR


CHAMBERS AND ASSOCIATIONS

A significant challenge faced by the export sector of Sri Lanka is to adopt initia-
tives that are compatible with global developments so as to improve performance.
Therefore a more conducive environment and strategy for exports to thrive, was
sorely needed. A strategic orientation coupled with a participatory approach
towards export development has been a high priority that the private sector
desires. It is in this context that we welcome the National Export Strategy ( NES ).

The strategy formulation process saw the adoption of a participatory approach


and transparency and this ensured that the views of the private sector were
incorporated at each stage of the process. These positive features lend to the
acceptance by the Private Sector of ownership for the strategy along with the
Public sector finally creates the National Strategy.

The NES provides a strategic orientation for Sri Lanka to achieve the dual objec-
tive of an export led economic growth trajectory and in making Sri Lanka a
regional hub of value-added exports. This aligns well with the strategic objectives
highlighted by the New National Trade Policy of Sri Lanka and the Vision 2025
articulated in the Policy Statement of the Government.

There will be significant challenges in the implementation phase. The private


sector is happy to confirm its pledge to stay vigilant and provide the necessary
support to the relevant implementation agencies to ensure that the objectives set
out in the NES are achieved and that Sri Lanka realizes the vision of becoming
an “Export Hub Driven by Innovation and Investment.”

Ms. Dhara Wijayatilake Mr. Ramal Jasinghe Ajith D Perera


CEO, President, Secretary General / CEO
Ceylon Chamber of Commerce National Chamber of Exporters Federation of Chambers of
Commerce and Industry
of Sri Lanka

Mr. Harin Da Silva Mr. Sujeeve Samaraweera


President, President,
Exporters Association of Sri Lanka National Chamber of Commerce
[ vii ]

MESSAGE BY AMBASSADOR
– EUROPEAN UNION DELEGATION
TO SRI LANKA AND THE MALDIVES

The story of Sri Lanka's economic development over the last few years has been
very positive. The European Union has partnered with Sri Lanka for decades
through humanitarian assistance and post-tsunami support, and later through
development cooperation. The National Export Strategy is a part of the compre-
hensive 'EU-Sri Lanka Trade Related Assistance Project'–a EUR 8 million project
initiated on a request made by the Sri Lankan Government. Opportunities pro-
vided by the new and dynamic global trading environment have fuelled the need
for Sri Lanka to formulate policies that centre on assisting trade and improving
competitiveness. Trade is one of the most sustainable methods to reduce poverty
and drive development.

In Sri Lanka, as in many other countries, micro, small, and medium-sized en-
terprises are vital to the overall growth of the country, contributing to over 70%
of GDP. Medium and small enterprises, which account for a vast majority of
jobs and businesses, are an important test for checking the country's economic
growth and resilience. The aim of this strategy is to pool together lessons learnt
to shape a future where small and medium-sized enterprises can benefit from
trade export. The National Export Strategy combines learning from the past, while
exploring the future and its inherent unpredictability. I hope this Strategy will help
Sri Lanka to move forward with a clear purpose, promoting linkages between
various sectors and diversifying its export basket and target markets.

I also take this opportunity to acknowledge the leadership and ownership shown
by the Government of Sri Lanka in the production of this strategy. The imple-
menting partners of the EU-funded project, ITC and UNIDO, have also been
instrumental in bringing together expertise and knowledge as well as identifying
the steps to promote Sri Lankan trade.

H.E. Tung-Laï Margue


Ambassador
Delegation of the European Union to Sri Lanka and the Maldives
[ viii ]

MESSAGE BY EXECUTIVE DIRECTOR


OF INTERNATIONAL TRADE CENTRE

Sri Lanka is on the cusp of transforming its export industry through the imple-
mentation of a National Export Strategy ( NES ). The visionary, pragmatic and
realistic recommendations of the NES will improve the operating environment
for all SMEs, develop incubating conditions for innovation, enhance capacities
for investment promotion, as well as expand Sri Lanka’s established excellence
of products and services to greater heights.

This NES is not merely a document that outlines recommendations, it is a holistic


and deep rooted process driven by the knowledge and experience of more than
six hundred entrepreneurs, industry leaders and heads of prominent public &
private sector institutions. It is a truly national endeavour to harness the trading
capacities of Sri Lanka and make it a bright beacon of competitiveness and
openness in the Indian Ocean.

The commitment of the Government of Sri Lanka and the private sector to imple-
ment this key reform agenda has been visibly established since the inception of
the NES design process. Financial allocation in the national budget of 2018 for the
NES, highlights the earnestness of the Government for fast tracked implementa-
tion. The official appointment of Advisory Committees to coordinate the imple-
mentation process reaffirms the dedication of public and private partners to work
hand in hand in building Sri Lanka, as the next regional trade hub.

In addition to this, the operationalisation of a dedicated management unit to


coordinate and set out annual work planning confirms the importance of the
NES in Sri Lanka’s development agenda. Most importantly, the involvement of
regional representatives in the design and implementation processes ensures
that the benefits of the NES will respond to localised requirements and impact
the lives of men and women from all corners of Sri Lanka.

The NES is a living document that will stay relevant and vibrant to guide national
economic development. ITC will continue to work with Sri Lanka to ensure that
the NES objectives are attained rapidly to create a fresh era of prosperity and
growth for its people.

Arancha Gonzales
Executive Director
International Trade Centre
[ ix ]

NOTE TO THE READER


Sri Lanka’s NES was developed based on a participatory approach during which
over 500 Sri Lankan industry leaders, small business owners, public sector repre-
sentatives and academics held consultations to reach consensus on key sector
competitiveness issues and priority activities. These inclusive platforms were held
throughout the country, including in Jaffna, Galle and Kandy.

Besides in-depth research and value chain analysis, these consultations were
complemented by:

ƒƒ Factory visits through which supply chain assessments were carried out to
gain further knowledge on key issues such as quality procedures, technical
skills, lean management, quality of raw materials, access to market, etc.
ƒƒ Interviews with domestic, regional and international buyers to guide the
NES with strategic insights and market intelligence as well as buyers’ require-
ments in terms of quality standards, food safety, packaging, buying cycles,
distribution channels, prices, etc.
ƒƒ Donor sensitization to identify synergies with ongoing/planned initiatives of
development partners to eventually result in collaboration during the imple-
mentation phase.

The NES is aligned to Sri Lanka’s development policy framework and will con-
tribute to achieve the ambitions of Vision 2025 and the New Trade Policy (NTP).
Vision 2025 of the Government of Sri Lanka, crystallizes the objective of Sri Lanka
to finally transition to an export-led era. Vision 2025 references the NTP as well as
the NES as the main tools towards the transformation of Sri Lanka into a regional
hub of high-value exports.

The principal outputs of the NES Sri Lanka design initiative are endorsed, co-
herent and comprehensive export strategy documents with five-year detailed
Plans of Action (PoAs) and implementation management frameworks. These
documents include:

1. A main NES document (the present document) which contains the overarching
national analysis. The NES design process provided the rationale for the selec-
tion of focus sectors and trade support functions (TSFs) based on ability to
achieve the vision. The NES diagnostics highlighted key national priorities for
improved competitiveness, such as a streamlined institutional and regulatory
framework, export finance and improved trade promotion. The main NES
aggregates and consolidates national priorities as well as major high-level
priorities from each sector/TSF into a coherent framework.
2. Individual NES priority sector strategies and TSFs packaged as separate
documents but in alignment with the main NES findings and overarching
strategic objectives. The stand-alone sector and TSF strategies focus on
their industry-specific priorities but also highlight cross-sector priorities such
as access to technology, development of industry clusters and linking industry
to academia. These cross-sector priorities are integrated in the main NES.
[x]

Main NES document


• The umbrella document with national priorities and the main NES PoA
(this document).
Individual TSF Strategy documents:
• Trade Information and Promotion
• National Quality Infrastructure
• Logistics
• Innovation and entrepreneurship (designed separately)
• Separate strategy documents and five-year PoAs were developed for
NES Sri
each of the above priority TSFs.
Lanka
Individual NES priority Sector Strategy documents:
• Information Technology–Business Process Management (IT–BPM)
• Boating Industry
• Wellness Tourism
• Spices and Concentrates
• Processed Foods and Beverages
• Electrical and Electronic Components
• Separate strategy documents and five-year PoAs were developed for
each of the above priority sectors.
[ xi ]

ACKNOWLEDGEMENTS

The NES of Sri Lanka was developed under the aegis of the Ministry of
Development Strategies and International Trade (MoDSIT) and the Sri Lanka
Export Development Board (EDB), with financial support from the EU as
part of the ‘EU–Sri Lanka Trade-Related Assistance: Increasing SMEs’ Trade
Competitiveness in Regional and EU Markets’ project.

The document benefited particularly from inputs and guidance provided by the
members of the public and private sector community that steered the formulation
of the NES. A NES Core Team was set up to lead the NES design process. Core
Team members are listed below.

NES Core Team

Name Designation Institution


Ministry of Development Strategies
Mr. Sujeewa Senasinghe Hon. State Minister International Trade
& International Trade
Ministry of Development Strategies
Mrs. Chandanie Wijayawardhana Secretary
& International Trade
Ministry of Development Strategies
Mr. Chinthaka S. Lokuhetti State Secretary of International Trade
& International Trade
Ministry of National Policies & Economic
Mr. Shantha Bandara Secretary
Affairs
Ministry of National Policies & Economic
Mr. M.I.M. Rafeek Secretary (Retired)
Affairs
Mr. K.D.N. Ranjith Asoka Secretary Ministry of Industry & Commerce
Mr. Bandula Wickramaarchchi Secretary Ministry of Primary Industries
Mrs. Dharshana Senanayake Secretary Ministry of Development Assignments
Mrs. Indira Malwatte Chairperson & CE Sri Lanka Export Development Board
Dr. P. Nandalal Weerasinghe Deputy Governor Central Bank of Sri Lanka
Additional Secretary- SME & Sectoral
Mr. M.A. Thajudeen Ministry of Industry and Commerce
Development
Ms. Tharangani Wickremasinghe Additional Secretary – Development Ministry of Plantation Industries
Department of Trade and Investment
Mr. K.A. Vimalenthirarajah Director General
Policy
Mrs. Sonali Wijeratne Director General Department of Commerce Sri Lanka
Mrs. Shobini Gunasekare Director General (Economic Affairs) Ministry of Foreign Affairs
Mr. S. Rajendran Additional Director General Sri Lanka Customs
Mr. Duminda Ariyasinghe Director General Board of Investment
Ministry of National Policies
Mrs. Ayanthi De Silva Director General
and Economic Affairs
[ xii ]

Name Designation Institution


Mr. S.S Mudalige Director General Department of National Planning
Mr. Jayantha Karunarathne Chairman Tea Exporters’ Association
Mr. Suresh Silva Chief Executive Officer Silver Mill Holdings Limited
Sri Lanka Association of Manufacturers
Mr. Prabhash Subasinghe Chairman and Exporters of Rubber Products
(SLAMERP)
Mr. Ramal G. Jasinghe President National Chamber of Exporters
Sri Lanka Association of Software
Dr. Arul Sivagananathan Chairman Emeritus
& Service Companies (SLASSCOM)
Sri Lanka Association of Software
Mr. Ruwindu Peiris Chairman
& Service Companies (SLASSCOM)
Mr. M.P.T. Cooray Secretary General Joint Apparel Association Forum (JAAF)
Mr. Rohan Masakorala President Hub Operators Association of Sri Lanka
Lanka Fishing Flies (Pvt) Ltd &
Managing Director & Manager / Board
Mr. Suresh D. Mel Hambantota District Chamber of
Member
Commerce
Mr. D.A. Perera Chairman Spice Council
Mr. Sarada de Silva Founder & Past Chairman Spice Council
Mr. Harin de Silva Chairman Exporters Association of Sri Lanka
Mr. Shiran Fernando Chief Economist Ceylon Chamber of Commerce (CCC)
Mr. Sean Van Dort The Past Chairman Shippers Council
Mr. Mahesh Amalean Chairman MAS Holdings (Pvt) Ltd
Mr. Ashroff Omar Chief Executive Officer Brandix Lanka Ltd.
Mr. Dilhan Fernando Chief Executive Officer Dilmah Tea
Mr. Fazal Mushin Chief Executive Officer Greenfield Bio Plantations (Pvt) Ltd
Camso Loadstar
Sri Lanka Association of Manufacturers
Mr. Keerthi Bandara CFO/Executive Director
and Exporters of Rubber Products
(SLAMERP)
Ms. Subhashini Abeysinghe Head of Economics Verite Research (Pvt )Ltd
Mr. Deshal de Mel Economic Advisor Ministry of Finance
Former Chief Negotiator -National Trade Ministry of Development Strategies
Dr. Saman Kelegama
Negotiation Committee & International Trade
Ministry of Development Strategies
Mr. Anushka Wijesinha Adviser
& International Trade
Member- National Trade Negotiation Ministry of Development Strategies
Dr. Ravi Ratnayake
Committee & International Trade
Chief Negotiator - National Trade Ministry of Development Strategies
Mr. K.J. Weerasinghe
Negotiation Committee & International Trade
Ministry of Development Strategies
Mr. Ajith Gunawardena Adviser
& International Trade
Member- National Trade Negotiation
Ministry of Development Strategies
Dr. Arittha Wickramanayake Committee / Precedent Partner, Nithya
& International Trade
Partners
[ xiii ]

NES Core Team - Alternates and Special Advisers

Name Designation Institution


Mr. D.V. Bandulasena Secretary – State Ministry of Agriculture State Ministry of Agriculture
Executive Director
Ms. C.P. Malalgoda Board of Investment
(Research & Policy Advocacy)
Executive Director
Mr. S.P.K Wijayatilake Board of Investment
(Investment Promotion)
Ms. J.A.A.M. Jayakody Director (Research & Policy Advocacy) Board of Investment
Mr. Udaya Wijayakulathilake Director Industrial Relations Board of Investment
Senior Deputy Director (Research &
Ms P.N Samaraweera Board of Investment
Policy Advocacy)
Ms. D.C.R. Dassanayake Deputy Director (Investment Appraisal) Board of Investment
Deputy Director (Investment Appraisal)
Mr. D.M.N. Dissanayake Board of Investment
- Tourism
Mr. W. S. Alwis Assistant Director (Investment Appraisal) Board of Investment
Ms. Lakmali Withanage Assistant Director (Investment) Board of Investment
Mr. Viran Fernando Assistant Director Board of Investment
Ms. Jeevani Siriwardena Director General Sri Lanka Export Development Board
Ministry of Development Strategies
Eng. Mangala Yapa Advisor
& International Trade
Mr. W.G.P.R. Watugala Senior Economist Central Bank of Sri Lanka
Ms. W. A. Dilrukshini Additional Director Central Bank of Sri Lanka
Mr. Alexi Gunasekera Deputy Director Department of Commerce
Mr. H.M.B. Herath Director of Commerce Department of Commerce
Mr. Anil Sirimanne Assistant Director Department of Commerce Sri Lanka
Ms. Kishani Wickramasinghe Asst. Director of Commerce Department of Commerce Sri Lanka
Dr. Janaka Wijayasiri Research Fellow Institute of Policy Studies
Additional Director General
Ms. Shiranthi Rathnayake Department of National Planning
(Policy Development)
Additional Director (Department of Ministry of National Policies
Ms. Chandrika Senanayake
Project Management & Monitoring) and Economic Affairs
Department of Trade and Investment
Mr. C. Murage Deputy Director
Policy
Mr. T. Shumps Chairman-Shums & Co. Ltd Exporters Association of Sri Lanka
Ministry of National Policies
Mr. U.G. Ratnasiri Additional Secretary - Economic Affairs)
& Economic Affairs
Ministry of National Policies
Mr. G.W. Kularathne Assistant Director
& Economic Affairs
Ministry of National Policies & Economic
Mr. R.H.W.A. Kumarasiri Additional Secretary
Affairs
Ministry of Development Strategies
Ms. Amila Nawaratne Additional Secretary
& International Trade
Ministry of Development Strategies
Mr. W.A.D.S. Gunasinghe Additional Secretary
& International Trade (MODSIT)
Ministry of Development Strategies
Ms. Gamani Liyanarachchi Assistant Director
& International Trade (MODSIT)
[ xiv ]

Name Designation Institution


Ms. Subhashini Silva Assistant Director Ministry of Foreign Affairs
Director General (Economic Affairs
Mrs. Sithara Khan Ministry of Foreign Affairs
Division)
Mrs. H.H.N.P. Hewarathna Assistant Director Ministry of Foreign Affairs
Additional Secretary-Administration &
Mr. T.D.S.P. Perera Ministry of Industry & Commerce
Finance
Ms. T.M.B. Manike Director Ministry of Industry & Commerce
Director
Mrs. Ishani Aberathna Ministry of Industry & Commerce
(Research Development)
Dr. Kumudini Gunasekare Agri Business Specialist Ministry of Primary Industries
Mr. Shiham Marikkar Secretary General/CEO National Chamber of Exporters
Mr. Eranda Fernando Consultant National Chamber of Exporters
Mr. Haridhu Abeygoonaratne General Manager Sim Centric Technologies (Pvt) Ltd.
Sri Lanka Association of Software
Mr. Darshan Cooray Executive Director Emeritus
& Service Companies (SLASSCOM)
Board Representative - Technology Sri Lanka Association of Software
Mr. Ashique Mohamed Ali
Forum & Service Companies (SLASSCOM)
Sri Lanka Association of Software &
Ms. Menushika Fernandopulle Programme Manager - Tentative
Service Companies (SLASSCOM)
Sri Lanka Association of Software &
Mr. Chrishan de Mel Executive Director
Service Companies (SLASSCOM)
Mr. Anuradha Jayaratne Deputy Director General Sri Lanka Customs
Mr. S. Mahesan Director Exports Sri Lanka Customs
Mrs. Dayani Wegapitiya Director - Policy & Strategic Planning Sri Lanka Export Development Board
Mr. Ranjith Abeykoon Secretary General Tea Exporters’ Association
Ms. Vidya Nathaniel Analyst Verite Research (Pvt )Ltd
Dr. Dayaratne Silva National Co-ordinator ITC EU-Sri Lanka Trade Assistance

It is also important to acknowledge the precious technical inputs, guidance and


leadership received from the EDB Policy & Strategic Planning Division. A special
thanks to: Dayani Wegapitiya, Achini Weerawardhane, Rukshanie Vidyaratne,
Iresha Chathuranganie, Indika Samarakoon, Shavindya Sumanasekara,
Sanjeewa Rathnasekara, Pubudi Weerasinghe and the entire team.

A full list of public and private stakeholders that contributed their precious time
to the design of the NES can be found in appendix 1.
[ xv ]

CONTENTS
Message by His Excellency The President of Sri Lanka ii
Message by the Honourable Prime Minister of Sri Lanka iii
Message by Honourable Minister of Development Strategies and International Trade iv
Message by Honourable State Minister for International Trade  v
Joint Message by the Private Sector Chambers and Associations vi
Message by Ambassador – European Union Delegation to Sri Lanka and the Maldives vii
Message by Executive Director of International Trade Centre  viii
Acknowledgementsxi

EXECUTIVE SUMMARY 1
VISION AND STRATEGIC OBJECTIVES 2

TRADE SUPPORT FUNCTIONS 5

NES FOCUS SECTORS 5

PLANNING NES IMPLEMENTATION SINCE DAY ONE 5

WHAT WILL THE NES BRING TO SRI LANKAN CITIZENS? 6

SETTING THE STAGE FOR AN EXPORT-LED ERA 7


SRI LANKA HAS SUCCESSFULLY UPGRADED ITS ECONOMY 7

THE NEXT ECONOMIC UPGRADE WILL COME FROM TRADE 10

THE WINDOW OF OPPORTUNITY – EXPORTS AT THE HEART OF UPCOMING REFORMS 17

THE TIME IS NOW – STRATEGIC ORIENTATIONS 25


VISION AND STRATEGIC OBJECTIVES 25

FOCUS SECTORS FOR EXPORT DIVERSIFICATION 31

MOVING TO ACTION 35
THE STRATEGIC FRAMEWORK 35

FOCUSING ON NES IMPLEMENTATION SINCE DAY ONE 36

CONCLUSION : IMPLEMENTATION HAS ALREADY STARTED WITH THE 2018 NATIONAL BUDGET 39

THE NATIONAL PLAN OF ACTION 2018–2022 41


APPENDICES57
REFERENCES81
[ xvi ]

LIST OF FIGURES

Figure 1 : Sri Lankan GDP and GDP per capita, 2000–2016 7


Figure 2 : Sri Lanka’s current account balance compared with regional peers, 2000–2014 ( US $ billions ) 8
Figure 3: Sri Lanka’s external debt ratio compared with regional peers, 2001–2016 (per cent) 8
Figure 4 : Shipping density in the Indian Ocean 9
Figure 5 : Sri Lankan trade in goods and services, 2000-2016 ( US $ billions ) 10
Figure 6 : Trade to GDP regional comparison, 2001–2016 ( percentage of GDP ) 10
Figure 7 : World export share, comparison with regional peers, 2000–2015 ( percentage of world exports ) 11
Figure 8 : World export index, comparison with regional peers, 2000–2015  11
Figure 9 : Composition of Sri Lanka’s exports of goods and services, 2016 11
Figure 10 : Sri Lankan services exports, 2005–2016 12
Figure 11 : Sri Lankan export destinations, 2016 12
Figure 12 : Decomposition of Sri Lankan export growth, 2005–2015 13
Figure 13 : Technological classification of Sri Lankan exports 14
Figure 14 : Industrial Performance Index, comparison with regional competitors, 2005–2015 15
Figure 15 : Manufactured goods - proportion of exports, comparison with regional competitors, 2005–2015  15
Figure 16 : Net FDI inflows to Sri Lanka ( balance of payments ), 2000–2016 ( current US $ millions ) 16
Figure 17 : FDI as a percentage of GDP, comparison with regional competitors, 2000–2016 ( per cent ) 16
Figure 18 : Capital expenditures 2003–2017 by industry clusters ( total : US $ 19.34 billion ) 16
Figure 19 : SME competitiveness in Sri Lanka – firm abilities 19
Figure 20 : Strategic framework 35
Figure 21 : Logic for the definition of the main NES PoA 36
Figure 22 : NES Management and coordination structure 37
Figure 23 : NES annual programmatic cycle across key implementing partners 39
Figure 24 : Mixed portfolio of sectors with maturation time frame 80
[ xvii ]

LIST OF TABLES

Table 1 : Number of products identified per sector at Harmonized System 6 level with export potential 78

ACRONYMS

The following abbreviations are used  :

ASYCUDA Automated System for Customs Data MoDSIT Ministry of Development Strategies
B2B Business-to-business and International Trade
BOI Board of Investment of Sri Lanka MoF Ministry of Finance
BPM Business process management MoNPEA Ministry of National Policies and Economic
CAB Conformity assessment body Affairs
CBSL Central Bank of Sri Lanka MoPS Ministry of Ports and Shipping
CCC Ceylon Chamber of Commerce MUSSD Measurement Units, Standards and
CSC Committee on Singapore’s Services Department
Competitiveness NCE National Chamber of Exporters of Sri Lanka
DoC Department of Commerce NES National Export Strategy
EDB Sri Lanka Export Development Board NQC National Quality Council
EEC Electrical and electronic components NQI National Quality Infrastructure
EU European Union NTP National Trade Policy
FDI Foreign direct investment PoA Plan of Action
GDP Gross domestic product R&D Research and development
GI Geographical indication SLAB Sri Lanka Accreditation Board
I&E Innovation and entrepreneurship SLSI Sri Lanka Standards Institution
IP Intellectual property SME Small and medium-sized enterprise
IT Information technology TSF Trade support function
ITC International Trade Centre UNIDO United Nations Industrial Development
ITI Industrial Technology Institute Organization
LCL Less than Container Load WB World Bank
MCC Multi-cargo consolidation
Photo : (cc) pixabay
1

EXECUTIVE SUMMARY

Connecting Asia to both Europe and Africa, Sri Lanka is for Sri Lanka to modernize and start a new cycle of export
well-positioned to participate fully in global production growth. The NES will enable the country to realize its full po-
networks and export to billions of consumers, both region- tential as an inevitable regional trade hub and a beacon of
ally and beyond. The increasing sophistication of Sri Lankan trade openness.
processing techniques, the fast growth of the services in-
dustry and the emergence of visionary industries are con- Sri Lanka now has the opportunity to catch up to fast-
tributing to making the country the next trade hub of the growing Asian exporting countries. Although positive
Indian Ocean. trends in the past five years have stimulated export growth,
key upgrades are required to reverse the long decline in
The NES is a timely catalyst through which the export share of exports to gross domestic product ( GDP ). Currently,
sector will be reshaped. The NES is aligned to Vision 2025 Sri Lankan export engines rely on a blend of traditional in-
and the NTP, and all aim to stimulate growth and job crea- dustries and growing services sectors. The NES will empow-
tion by improving the ability of firms to export and compete er the emergence of new champions beyond the traditional
in foreign markets. The NES builds on consensus from the export industries of apparel, tea, gems and rubber. High tar-
entire export community about the upcoming tasks and the iffs, complicated administrative procedures and challenging
heaviest roadblocks to be dislodged. It defines a detailed access to inputs will be addressed to favour the growth of
road map for faster export growth and acknowledges that higher-technology and knowledge-intensive exports, which
things need to be done differently to increase the contribu- are less vulnerable to cost shifts. NES implementation will
tion of trade to economic development. address major systemic issues hindering the rapid expan-
sion of Sri Lanka’s exports.
The time to transform the export sector is now. The cur-
rent wave of economic reforms for a more transparent and To seize the window of opportunity, Sri Lanka’s NES pro-
flexible business environment, combined with increasing re- poses a clear-cut strategic orientation to drive the reforms
gional trade opportunities and major transformations in pro- needed for Sri Lanka to reach its potential.
duction techniques, provide a unique window of opportunity

NES : A top-down and bottom-up process that consolidates national


and sector priorities into a comprehensive implementation framework.

The NES design process rationale for selection of focus sectors and The stand-alone sector and TSF strategies focus on their industry-
TSFs was their ability to achieve the vision. The NES diagnostics specific priorities but also highlight cross-sector priorities such as
highlighted key national priorities for improved competitiveness, access to technology, development of industry clusters and linking
such as a streamlined institutional and regulatory framework, export industry to academia. These cross-sector priorities are integrated
finance and improved trade promotion. The main NES aggregates in the main NES.
and consolidates national priorities as well as major high-level
priorities from each sector / TSF into a coherent framework.

[ Executive summary ]
2

VISION AND STRATEGIC OBJECTIVES


Through an inclusive and consultative process, Sri Lanka’s This vision is underlined by four national objectives, which
industry leaders and public sector representatives defined provide the overall framework for the prioritization of reforms,
the following NES vision : institutional alignment, market development and the selec-
tion of focus sectors and TSFs.


 Sri Lanka – an export hub driven


by innovation and investment 

Our export development vision :

‘Sri Lanka: An Export Hub Driven by Innovation and Investment’

Guided by four strategic objectives :

To To To
have a business strengthen drive export
To become an
enabling, predictable Sri Lankan diversification
efficient trade and
and transparent policy exporters’ through
logistics hub
and regulatory market-entry innovation and
to facilitate exports
framework that supports and compliance by strengthening
exports capacities emerging sectors

Improved business environment for all export sectors through :


Logistics

Trade Information and Promotion

National Quality Infrastructure

Innovation and Entrepreneurship

Six focus sectors for innovation and export diversification :

Electrical and Processed


Wellness Boat Spices and
IT-BPM Electronic Food and
Tourism Building Concentrates
Components Beverages

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


3

STRATEGIC OBJECTIVES The trade information and promotion priorities of the NES
strive to improve data collection, analysis and dissemina-
1. To have a business-enabling, predictable tion between key institutions – such as EDB, the Department
and transparent policy and regulatory framework of Commerce ( DoC ), the Central Bank of Sri Lanka ( CBSL ),
that supports exports. private sector chambers and others – in order to create a
unique platform for exporters to easily access relevant, up-
The private sector, including small and medium-sized en- to-date and affordable market intelligence. This objective
terprises ( SMEs ), considers this objective fundamental to equally strives to focus trade promotion efforts in line with
address challenges faced by Sri Lankan enterprises, re- industries’ priorities by increasing engagement with trade
duce costs of doing business and improve export com- missions, creating a genuine Sri Lankan brand, and ensuring
petitiveness. It focuses on re-engineering processes for exporters’ brands are protected by strengthening targeted
improved institutional coordination, streamlining adminis- intellectual property ( IP ) processes.
trative procedures and deepening the digitization of trade-
related processes. The strengthening of the NQI function will give national in-
stitutions increased ability to effectively support SMEs’ and
To achieve this objective, the main NES PoA favours the es- exporters’ compliance with market requirements and stand-
tablishment of an institutional public and private coordination ards. The NQI Strategy provides an actionable road map to
mechanism for trade policy design, formulation and execu- implement the National Quality Policy and improve coordi-
tion. This key action aims to increase transparency and coor- nation between the Sri Lanka Standards Institution ( SLSI ) ;
dination between key partners to avoid ad hoc policymaking Measurement Units, Standards and Services Department
and duplication of efforts. ( MUSSD ) ; Sri  Lanka Accreditation Board ( SLAB ) ; Consumer
Affairs Authority, conformity assessment bodies ( CABs ) and
This objective equally prioritizes updating Sri Lanka’s regu- other institutions responsible for ensuring quality of prod-
latory environment by amending and reviewing a number ucts. This objective will also make testing, adherence to
of regulations – including the Quarantine Law, Customs Act standards and traceability more affordable and accessible,
and import regulations – to streamline trade procedures and thereby contributing to better protection of Sri Lankan con-
allow the country to become an effective trade hub. The sumers as well as market entry for exporters.
gazetting of the Electronic Transactions Act or the amend-
ment of the Board of Investment ( BOI ) Law will reinforce the
attractiveness of the country as an efficient place for doing 3. To become an efficient trade and logistics hub
business. to facilitate exports.

This objective also highlights the need for improved export fi- This objective is critical for Sri Lanka to become a recog-
nance and insurance solutions, and recommends increased nized hub serving Asia and the world. It aims to create the
involvement of the private sector in trade negotiations. conditions for Sri Lanka to leverage its enormous shipping
and logistics potential by strengthening its infrastructure, im-
proving services and attracting the investment and skills re-
2. To strengthen Sri Lankan exporters’ market-entry quired for sustainable growth.
and compliance capacities.
This objective will be achieved through a dual approach of
This strategic objective focuses on strengthening two key increasing transhipment, multi-cargo consolidation ( MCC )
TSFs that deliver trade information and promotional sup- and commercial hub activities for international shipments ;
port, and quality compliance services, both necessary simultaneously ensuring improved services for Sri Lanka’s
to increase exporters’ performance in destination mar- own transport and exports of goods. A key focus of the
kets. The improvement of the trade information and promo- Strategy is reforming the logistics ecosystem by adjust-
tion function and the strengthening of the National Quality ing key regulations such as the Sri Lanka Port Authority
Infrastructure ( NQI )1 will benefit SMEs, emerging exporters Act, the Electronic Transactions Act and Commercial Hub
and mature export industries of Sri Lanka. Regulations to favour increased sophistication and quality of
services. The NES also recommends provision of adequate
facilities, such as warehouses, bonded logistics centres and
common user facilities, as well as improved rail connections
between ports and airports, in order to increase storage ca-
1.– A stand-alone NQI Strategy was developed on the basis of the National
pacities, facilitate e-commerce operations, attract more tran-
Quality Policy – approved by the Cabinet in November 2016, the Sri Lanka shipment and increase overall capacity.
NQI Gap Assessment completed by the World Bank, and the technical
guidance of UNIDO. The NQI Strategy was designed with the technical
assistance and methodology of ITC.

[ Executive summary ]
4

Photo: © advantis.world

The achievement of this objective depends and builds on In order to capitalize on the potential of these emerging ex-
Sri Lanka’s World Trade Organization trade facilitation ob- port sectors, the NES focuses on implementing vital national
ligations implemented by the National Trade Facilitation solutions, while equally targeting industry-specific interven-
Committee and supported by various development part- tions. This dual approach to sector development ensures
ners. Recognition of Sri Lanka as a logistics hub depends that all priority actions – including regulations, industry coor-
partly on the implementation of a single window system, dination and market development – are properly addressed
the rolling out of e-payment solutions and the efficiency of to drive growth in each priority sector. The NES focuses on
border agencies. reinforcing new export industries by proactively improving
the provision of skills to support these industries’ growth ; at-
tracting investment, technologies and knowledge into these
4. To drive export diversification through innovation promising sectors ; and supporting integration of SMEs from
and by strengthening emerging export sectors. across Sri Lanka into the export value chain.

This strategic objective will create the conditions and Innovation is critical for the diversification of Sri Lankan ex-
implement targeted solutions to develop visionary and ports. Because innovation creates effects beyond the ex-
emerging export sectors. Established export sectors such port sector, an independent working group of public and
as apparel, tea, rubber and coconut products have proven private stakeholders was appointed by the Prime Minister to
their ability to compete in world markets.2 While these ma- design a stand-alone strategy for innovation and entrepre-
ture sectors are the backbone of Sri Lanka’s export perfor- neurship ( I&E ).3 The implementation of this I&E Strategy will
mance, enablement and strengthening of new industries is support the NES priority to reorient research and develop-
a priority to enable faster export growth. ment ( R&D ) and innovation to support the needs of emerg-
ing export sectors.

2.– These sectors are driven by strong private sector ownership and
built on the sectors’ competitive advantages. The rubber sector has the
Sri Lanka Rubber Industry Master Plan 2017–2026 and the textiles sector is 3.– The I&E Strategy of Sri Lanka was developed independently of the
developing its own new sector strategy. Other important sectors with high NES, by MoDSIT, with technical assistance from the World Bank. The
export potential, such as fisheries, are already receiving support to develop NES and I&E Strategy jointly contribute to build innovation in exports and
strategically. entrepreneurship of SMEs.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


5

TRADE SUPPORT FUNCTIONS


While the NES provides the conditions to enable diver- Four TSFs were shortlisted by public and private stake-
sification by strengthening emerging sectors, all export holders to achieve the NES vision and strategic objec-
industries of Sri Lanka will benefit from the increased per- tives : Trade Information and Promotion, NQI, Logistics,
formance of key TSFs. TSFs target key horizontal dimen- and Innovation and Entrepreneurship. The main NES doc-
sions of trade that affect the national business environment ument integrates major recommendations from individual
and competitiveness of exporting sectors. Improving TSFs TSFs. However, each TSF has a stand-alone strategy that
will facilitate doing business for all Sri Lankan enterprises. outlines its specific needs and the changes necessary for
Better TSF efficiency is essential to increase the abilities of improved performance.
infant industries over time so that they can become vision-
ary export sectors in the next NES.

NES FOCUS SECTORS


The focus sectors provide a good mix of industries with Focus sectors Type of industry Growth trend
different growth trends, yet ensure the NES remains fo-
IT–BPM Services Mature
cused to achieve the key objective of export diversifica-
Wellness tourism Services Emerging
tion during its five-year implementation period. The focus
sectors were identified based on quantitative and quali- Spices and concentrates Agriculture Mature
tative parameters derived from export potential assess- Boating industry Manufacturing Visionary
ments, conducted by EDB and BOI under the guidance of Processed foods and Agriculture Emerging
Harvard University, as well as studies by the Commonwealth beverages
Secretariat, McKinsey, the World Bank and ITC. These export Electrical and electronic Manufacturing Visionary
potential assessments were then complemented by qualita- components ( EEC )
tive criteria, such as socioeconomic contribution, spillover
potential and environmental sustainability. Sri Lanka Cabinet Each NES focus sector possesses a stand-alone export
of Ministers formally validated the focus sectors selection strategy determining the industry-specific requirements for
on 14 July 2017. sustained industry development and export competitiveness.

PLANNING NES IMPLEMENTATION SINCE DAY ONE


The NES ensures the translation of priorities into imple- effectively, resources used efficiently, transparency of infor-
mentable actions. The implementation of these priority ac- mation leads to accountability, and key public–private op-
tions through an efficient coordinated framework will drive erators support implementation.
reforms, optimize institutional structures and strengthen pri-
vate sector capacities to respond to national, regional and The responsibility for implementation rests with leading
global market opportunities. national institutions identified in the NES PoAs. Public and
private representatives have identified one responsible pub-
Trade competitiveness cuts across ministries, national lic or private institution responsible for implementing each
agencies, subnational institutions, industry associations NES priority activity. Public institutions have been consult-
and private sector organizations. Hence, without transpar- ed to integrate NES priorities into their annual planning cy-
ent national public–public as well as public–private coordi- cle and national budget proposals. Planning units of the
nation for trade development, the envisaged improvements Government will refer to the NES PoAs for guidance in pro-
will not be achieved and export competitiveness will con- gramming. Private sector institutions will implement their own
tinue to underperform. As such, an effective governance NES priorities, as the private sector is the greatest benefi-
mechanism for implementing NES recommendations aims ciary of NES implementation.
to ensure that implementation responsibilities are assigned

[ Executive summary ]
6

The 2018 National Budget has allocated resources to stakeholders. The implementation structure did not require
national institutions to fast-track implementation of NES regulatory or legislative amendments ; it works within the ex-
priorities. Quick-win activities ranging from regulatory up- isting legal framework of Sri Lanka.
grading, enabling SME participation in exports, strengthen-
ing visionary sectors and increasing promotion of Sri Lankan Export advisory committees, composed of private and
products were prioritized for rapid implementation. This con- public sector representatives, are mandated to steer the
firms the Government’s commitment to rapidly transform and development of a specific export industry in a strategic
upgrade Sri Lanka’s export sector.4 manner. The Export Development Act ( 1979 ) grants EDB the
following power : ‘On advice from the Board, the Minister may
In order to fast-track implementation, it was essential to by Order in the Gazette establish advisory committees for
ensure the necessary conditions for implementation and the development and promotion of certain products, prod-
coordination were rapidly operational. With this in mind, the uct groups and commodities as well as functional aspects
Government and private sector representatives have agreed of trade’.
on a NES governance structure that became operational in
early 2018. Export advisory committees were revamped, reorganized
and given further influence by the Government to strategi-
The NES implementation and coordination mechanisms cally guide their industry’s development. The Committees
will support and guide implementing partners in program- were operational in early 2018 and are already guiding the
ming and delivery of priority projects. A coherent and re- implementation of their respective sector or TSF strategy.
sourced coordination structure will ensure that national trade
development efforts do not occur in isolation and are aligned A NES Management Unit is operational to coordinate and
to priorities defined by national policymakers and industry monitor implementation of the NES. The NES Management
Unit reports to the Secretary of MoDSIT and is primarily re-
4.– The list of 2018 National Budget proposals contributing to NES sponsible for ensuring the PoAs adopted under the NES are
implementation is in appendix 2. implemented in a timely and effective manner.

A key NES priority – a formal high-level trade council

A key recommendation of the vast majority of the 556 participants The membership is to be appointed in a transparent manner. The
of the NES design process was to ( re )establish a high-level formal high-level trade council is to be chaired by the President / Prime
public–private council responsible for coordinating all trade devel- Minister. Its key objective is to reduce ad hoc trade policymaking
opment interventions, including the NES, and reduce duplications and oversee the implementation of trade-related initiatives.
among trade-related institutions. ( see main NES PoA – 1.1.1 ).

WHAT WILL THE NES BRING TO SRI LANKAN CITIZENS?


Implementing the NES will create sustainable and fast export
growth for the benefit of all Sri Lankans.

ƒƒ The NES will unlock the development of nascent export ƒƒ The NES will allow Sri Lanka to become a regional trade
sectors, thereby providing entire new job opportunities. hub, which will attract foreign investment to the country
ƒƒ The NES will put in place all conditions required for ex- and spur economic development.
isting value added industries to boom through exports, ƒƒ The NES will ensure inclusion of regions by connecting
favouring retention of value in the country and generat- all initiatives to local production centres.
ing new skills locally. ƒƒ The NES will streamline legal and administrative pro-
ƒƒ The NES will facilitate the entry of SMEs into exports cedures, reducing complexity for businesses to operate.
by easing bureaucratic procedures and through targeted
support, including trade finance solutions.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


7

SETTING THE STAGE FOR


AN EXPORT-LED ERA

SRI LANKA HAS SUCCESSFULLY UPGRADED ITS ECONOMY


Sri Lanka’s economy has been through a major upgrade. countries such as Viet Nam and India. Having become a
Over the last decade, Sri Lanka created employment, middle-income country, Sri Lanka aims to become a high-
lifted millions of people out of poverty and unified the er middle-income country through sustainable economic
country to build continued growth. An average real GDP growth.6
growth of 6.5 % during the period 2009–2013 has made
Sri Lanka one of the fastest-growing countries in Asia.5 While
Sri Lanka’s economy is still relatively modest in comparison 6.– World Bank ( 2015 ) : Sri Lanka – Ending Poverty and Promoting
to others in the region, it has a higher GDP per capita than Shared Prosperity. A Systematic Country Diagnostic. Washington,
D.C., p. 11. Available from http ://documents.worldbank.org/curated/
en/714211468189526474/Sri-Lanka-Ending-poverty-and-promoting-
5.– ITC calculations based on World Bank data, 2017. shared-prosperity-a-systematic-country-diagnostic.

Figure 1 : Sri Lankan GDP and GDP per capita, 2000–2016

Sri Lanka GDP


(current billion US$) GDP per capita, PPP (constant 2011
international US$)
100
20.000
80
15.000

60 10.000

40 5.000

20 0
2000 2002 2004 2006 2008 2010 2012 2014 2016
0
India Viet Nam
2000

2002

2004

2006

2008

2010

2012

2014

2016

Thailand Sri Lanka

Source : ITC calculations based on World Bank data, 2017.

[ Setting the stage for an export-led era ]


8

Photo: ITC

Although Sri Lanka has experienced rapid growth and re- an increase in domestic consumption, as well as the growth
duced poverty, the engines that pulled the economy have on non-export industries such as construction and public
started to falter, pointing to a pressing need for replace- sector spending. The slowdown of economic growth clear-
ment. Between 2013 and 2016, annual real GDP growth ly demonstrates that domestic demand cannot be the only
slowed to an average of 4.4 %.7 This slowdown can be ex- source of growth, especially considering the limited size of
plained by the nature of the components of the previous the domestic market. Another key indicator is the current ac-
growth. Since 2000, Sri Lanka’s economy has been led by count deficit of the balance of payments, which has been
negative since 1975, and amounted to negative US $ 2.01
7.– ITC calculations based on World Bank data, 2017. billion in 2015.

Figure 2 : Sri Lanka’s current account balance com- Figure 3: Sri Lanka’s external debt ratio compared
pared with regional peers, 2000–2014 with regional peers, 2001–2016 (per cent)
( US $ billions )

50 300
Percentage of exports of goods, services and

40 250
30 200
US$ Billions

20
150
primary income

10
100
0
50
-10
-2,01 0
-20
2001
2006
2008
2010
2011
2012
2013
2014
2015
2016

2000 2002 2004 2006 2008 2010 2012 2014

Viet Nam Malaysia Sri Lanka Thailand Malaysia

Thailand Sri Lanka Viet Nam Indonesia

Source : ITC calculations based on World Bank data, 2017.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


9

Expansion of high-value exports emerges as an inevitable The strategic location of Sri Lanka at the crossroads be-
path for Sri Lanka to achieve its sustainable growth goals. tween the area covered by the South Asian Association
Trade and current account deficits, as well as the reliance on for Regional Cooperation and South-East Asia, the fast-
high levels of foreign borrowing can mainly be addressed est-growing regions in the world, gives the country all the
through increasing export revenues. Higher export revenues right conditions for exports to boom and for the country to
are a solution to increase Sri Lankan resilience in regard to become a beacon of openness. Sri Lanka is close to many
its foreign liabilities, as well as to stabilize exchange rate emerging markets and is already an important transhipment
fluctuations. Besides these considerations, increased trade hub for the region. Previous sector development was mainly
revenues have the potential to generate investment inflows concentrated on hard infrastructure – driven by many govern-
into new areas and new technologies, increase productiv- ment policies and support from international partners – in-
ity, create jobs and strengthen the skills of the Sri Lankan cluding projects such as the Urban Transport Master Plan for
labour force. Colombo Metropolitan Region and Suburbs, megaprojects
like the development of the Mattala Rajapaksa International
Airport and Hambantota Port, and national master plans for
ports, railways and roads.

Figure 4 : Shipping density in the Indian Ocean

Source : Marine Traffic Density Map ( 2017 ).

Although Sri Lanka has taken a major socioeconomic leap over the last decade, GDP
growth was mostly driven by public sector expenditure and domestic consumption. Trade
has made a limited contribution to this growth, which suggests that the traditional growth
engines are no longer sustainable. The country needs to revise its growth development
strategy for the future.

[ Setting the stage for an export-led era ]


10

THE NEXT ECONOMIC UPGRADE WILL COME FROM TRADE


Although Sri Lanka has traditionally been an import-de- When comparing Sri Lanka’s export growth to the region, the
pendent insular economy, exports have started showing country’s performance has improved. The only neighbour-
positive trends over the past five years. Over the last dec- ing countries reaching higher export growth rates were Viet
ade, exports of goods and services grew by an annual av- Nam and India, with 15.5 % and 8 % respectively. Indonesia
erage of 7.4 %, reaching US $ 17.4 billion in 2016. Imports and Malaysia’s exports of goods and services only grew at
growth over the same period was slightly lower at 7.3 %, 4.6 % and 1 % respectively.
which is a hint towards a change in trade balance trends.

Figure 5 : Sri Lankan trade in goods and services, Figure 6 : Trade to GDP regional comparison,
2000-2016 ( US $ billions ) 2001–2016 ( percentage of GDP )

25 100
90
20 80
70
Percentage of GDP

15
Current billion US$

60
10 50
40
5 30
20
0
10 21,4
-5 0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
-10
2000 2002 2004 2006 2008 2010 2012 2014 2016
Sri Lanka Thailand
Trade balance Exports Imports Viet Nam India

Source : ITC calculations based on Comtrade and World Bank World Development Indicators data, 2017.

However, these positive signs are counterbalanced by from 141 % in 2000 to 265 % in 2016.9 While neighbouring
the fact that export growth starts from a very low base. countries such as Viet Nam, Thailand and Indonesia have
Sri Lanka remains a marginal exporter in the region, with succeeded in reducing their external debt ratio since 2000,
a world export share that stagnated between 0.08 % in Sri Lanka has become the country with the greatest debt to
2001 and 0.07 % in 2016. Other economies, such as India, export ratio in South Asia.
Thailand, Indonesia and Viet Nam, have successfully in-
creased their export share during the same period, while Another warning sign when it comes to export growth is the
already starting with a much higher share of world exports. continuously decreasing contribution of exports of goods
and services to Sri Lanka’s GDP, from 39 % in 2000 to 21.4 %
The trade deficit has also remained unchanged and has in 2016. This contrasts with key regional competitors such
even been aggravated, leading to accumulation of the as Viet Nam and Thailand, which steadily increased their ex-
debt required to finance the balance-of-payments short- port share to GDP ratio during the same period. This trend
falls. Sri Lanka’s trade balance deficit remains substantial, illustrates that Sri Lanka’s export growth is too feeble to be
and increased from US $ 0.7 billion in 2001 to US $ 8.9 bil- able to remain a key contributor to GDP.
lion in 2016.8 This led to a rise in the ratio of debt to exports

9.– International Monetary Fund ( 2016 ). Sri Lanka – Staff Report for


the 2016 Article IV Consultation and Request for a Three-Year Extended
Arrangement Under the Extended Fund Facility, p. 54. IMF Country Report
8.– ITC calculations based on Comtrade data. No. 16/150. Washington, D.C.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


11

Figure 7 : World export share, comparison with region- Figure 8 : World export index, comparison
al peers, 2000–2015 ( percentage of world exports ) with regional peers, 2000–2015

1,80 1200
1,60 1000
1,40
% OF WORLD EXPORTS

1,20 800
1,00

INDEX
0,80 600
0,60 400
0,40
0,20 200
-
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
India Thailand
Indonesia Viet Nam Viet Nam India Thailand
Sri Lanka Indonesia Sri Lanka

Source : ITC calculation based World Development Index indicators, 2017.

Currently, Sri Lankan export engines rely on a blend of tra- Sri Lanka has increased its exports of electrical machinery,
ditional industries and growing services sectors. In 2016, gems and processed food products such as coconut prod-
the export sector consisted mainly of apparel ( 26 % ), travel ucts. Meanwhile, Viet Nam has not only multiplied tenfold
services ( 20 % ), transport services ( 13 % ), tea and spices the value of its exported goods and services but also de-
( 9 % ), and rubber ( 5 % ). Sri Lanka doubled its export val- veloped its support industries and contiguous sectors, and
ue by intensifying exports of traditional industries rather increased its modern, high value added production, includ-
than through export diversification. However, more recently, ing high technology, chemicals and other industries.

Figure 9 : Composition of Sri Lanka’s exports of goods and services, 2016

Fruit and Fish Mineral fuels, oils


Miscellaneous edible preparations
nuts 1% (coconut water)…
1%
1%
Others
Gems
14%
1%
Electrical Transport
machinery 13%
Rubber
1%
5% Services
40% Travel ICT
20% 5%

tea, spices Apparel Financial services


9% 26% 1%
Government Insurance and
pension
Other services Construction
1%

Source : ITC calculations based on Comtrade data, 2017.

[ Setting the stage for an export-led era ]


12

Even though exports of goods show limited diversifi- came from the travel, and information and communications
cation, the services sector has been evolving more dy- technology industries, with 24 % and 18 % annual growth be-
namically, becoming one of the drivers of recent export tween 2006 and 2016 respectively. The transportation sec-
performance. In absolute terms and compared with 2005, tor enjoyed 12 % annual growth over the same period. The
Sri Lankan exports of services quadrupled to US $ 7.1 billion travel industry overtook transportation services in 2014 and
in 2016. In relative terms, service exports increased from became the largest service export, culminating at US $ 3.5
4.7 % of GDP in 2011 to nearly 8 % in 2015. The services billion today. Recently, financial, insurance and pension – as
sector also enjoyed a trade surplus, which stood at US $ 2.3 well as construction – services have gained, but still play a
million in 2015. Within services exports, the greatest growth less significant role in overall Sri Lankan exports of services.

Figure 10 : Sri Lankan services exports, 2005–2016

8000
7000
6000
5000
4000
3000
2000
1000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Travel Transport ICT

Financial services Insurance & pension Construction

Other business services Government

Source : ITC calculations based on Comtrade data, 2017.

The main goods’ export destinations remained relatively destinations did not change, while their total share de-
unchanged over the past decade, showing limited over- creased by 9 %. Current global trends in market development
all market diversification. In 2016, Sri Lanka’s top export will be relevant for future Sri Lankan exports. The foreseen
destinations were the United States of America ( 27 % of to- granting of the EU Generalized System of Preferences+,
tal exports in goods ), the United Kingdom of Great Britain Brexit, the Trans-Pacific Partnership and prospering Asian
and Northern Ireland ( 10 %  ), India ( 7  %  ) and Germany markets are all changing Sri Lanka’s positioning in the inter-
( 5 % ). Compared to 2005, the ranking of the top four export national trade environment.

Figure 11 : Sri Lankan export destinations, 2016

Other USA
27% 27%
Australia
2%
France
2% UK
Iran 10%
2% Canada
2% Japan India
Russian Fed. 2% 7%
2% Netherlands China UAE Germany
Belgium Italy
2% 2% 3% 5%
3% 4%

Source : ITC calculations based on Comtrade data, 2017.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


13

Photo: (cc) - Anushka Wijesinha

Even though market diversification remained modest, As already indicated, Sri Lanka needs to overcome sys-
Sri Lanka’s new markets mostly emerged in Asia rather temic challenges to diversify its export industries. The vast
than Europe over the last five years. The greatest growth of majority of export growth can be attributed to intensifica-
exports between 2012 and 2016 was in the Chinese ( 23 % ), tion of existing product categories and market relationships.
Indian ( 8 % ), American ( 7 % ), Canadian ( 7 % ) and Emirati Around 32 % of the export growth in goods can be attributed
( 7 % ) markets. European destinations have generally been to already existing products exported to new markets. Only
shrinking since 2011 as a share of Sri Lanka’s total exports. 2 % of export growth resulted from new products exported to
This confirms the ability of mature export sectors to expand existing markets. Growth attributed to new products reaching
their market reach. For example, tea is exported to 111 coun- new markets ( full diversification ) was negligible.
tries, while apparel is exported to around 90 countries.

Figure 12 : Decomposition of Sri Lankan export growth, 2005–2015

Decomposition of Export Growth


LKA, HS 2005-15
1,52
1.50%

1.00%

0.50%
-0.32

-0.00 -0.02
0.00%

-0.30
-0.50%
-0.57

Old Prods to Old Mkts New Prods to New Mkts


Fall Old Prods to Old Mkts New Prods to Old Mkts
Extinct Old Prods to New Mkts

Source : ITC calculations based on Comtrade data, 2016.

[ Setting the stage for an export-led era ]


14

This difficulty in diversifying export products and markets Sri Lanka continues its path towards higher middle-income
is in part linked to the fact that exports tend to be concen- status, which goes hand in hand with more increases in the
trated in low-technology, labour-intensive segments which cost of labour. The challenge of improving productivity ( e.g.
are vulnerable to cost shifts. It also reflects the sustained through higher capital endowment or demand-driven tech-
decrease in relative manufacturing exports and high-tech nical and vocational education and training programmes )
manufacturing exports caused by the high cost of imported is becoming a key challenge that needs to be addressed in
inputs and a weak national innovation system. This devel- order for Sri Lanka to stay competitive.
opment will become even more pronounced in the future as

Figure 13 : Technological classification of Sri Lankan exports

Technological Classification of Exports


LKA

Commodities

Natural Resource-Based Manufacur

Low Technology Manufactures

MediumTechnology Manufactures

HighTechnology Manufactures

Other Transactions

Not classified
2000-05
2005-10 0 500 1,000 1,500 2,000

2010-15 Trade Value, Thousands US$

Source : ITC calculations based on Comtrade data, 2016.

It is still challenging for SMEs – which account for 80 % Exports of manufactured products have overall experi-
of all businesses in Sri Lanka, provide 45 % of employ- enced a low during the past 15 years but almost came
ment and contribute 52 % of GDP – to engage in exports. back to their 2000 level in 2015 at 76 % of all Sri Lankan
Sri Lanka recognizes SMEs as the backbone of the econo- exports. During the same period, regional competitors such
my10 but they face challenges competing with certified qual- as Viet Nam and Thailand increased their manufacturing ex-
ity products, connecting with foreign buyers, and adapting port share. Domestically, increases in manufacturing value
to constantly evolving global technologies and production addition, which almost doubled between 2000 and 2015,
methods.11 These difficulties affect SMEs’ capacity to de- contributed the most to GDP.12 Internationally, according
velop new products as well as to diversify export destina- to the United Nations Industrial Development Organization
tion markets. Many SMEs use outdated technologies and ( UNIDO ) Industrial Performance Index,13 in the past 15 years,
equipment, leading to higher production costs, waste and
lower productivity. Insufficient management capacity, busi-
ness knowledge and support programmes to guide enter- 12.– Based on UNIDO ( 2017 ). UNIDO Statistics data portal. Available from
http ://stat.unido.org/#. Accessed 31 October 2017.
prises on productivity improvement limit the development of
13.– The Industrial Performance Index makes calculations based on :
many Sri Lankan SMEs. 1.Manufacturing value added per capita ; 2. Manufacturing export per
capita ; 3. Share of Medium-high and high technology ( MHT ) activities
in total manufacturing value addition ; 4. Share of manufacturing value
10.– Sri Lanka, Ministry of Industry and Commerce ( n.d. ). National addition in GDP ; 5. Share of MHT manufactures exports ; 6. Share
Policy Framework for Small Medium Enterprise ( SME ) Development, p.1. of manufactures export in total exports ; 7. Share of the country in
Colombo. world manufacturing value addition ; 8. Share of the country in world
11.– ITC ( 2016 ). SME Competitiveness Outlook : Meeting the Standard manufactures exports. For more details, see : Upadhyaya, Shyam ( 2013 ).
for Trade. Geneva. Available from www.intracen.org/uploadedFiles/ Composite measure of industrial performance for cross-country analysis.
SMECO2016.pdf. Vienna : UNIDO.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


15

Photo: (cc) - Anushka Wijesinha

Sri Lanka went down six places in rank and holds position


75 out of 148 countries. That Sri Lanka primarily focuses
on serving the national market, rather than the international
market, explains the inverse international and domestic de-
velopment of Sri Lanka’s industrial sector. Focusing on the
domestic market makes diversification of exports through
the development of modern export industries more difficult. Photo: (cc) - Anushka Wijesinha

Figure 14 : Industrial Performance Index, comparison Figure 15 : Manufactured goods - proportion of
with regional competitors, 2005–2015 exports, comparison with regional competitors,
2005–2015

0,18 90%
0,16 85%
0,14 80%
0,12 75%
0,10
Index

70%
Percentage

0,08 65%
0,06 60%
0,04
55%
0,02
50%
0,00
45%
20002002200420062008201020122014
40%
India Thailand 2000 2002 2004 2006 2008 2010 2012 2014

Indonesia Viet Nam India Thailand

Sri Lanka Viet Nam Sri lanka

Source : ITC calculations based on UNIDO statistics and World Bank World Development Indicators, 2017.

Compared with its neighbours, Sri Lanka has not been in 2016, showing a recovery for the first time since 2011.15
successful in tapping into foreign direct investment ( FDI ) The sectors that have attracted the highest level of FDI ( capi-
as a source of capital and innovation. In fast-growing tal investment ) are logistics, transportation and warehousing,
newly industrialized countries, FDI plays a major role in financial services and tourism services. Manufacturing has
stimulating fast dynamic economic growth and export de- failed to attract significant levels of FDI. The highest level of
velopment.14 Sri Lanka’s FDI inflows stood at US $ 898 million job creation through FDI was recorded in the apparel, con-
struction and tourism services sectors.

15.– World Bank Group ( 2017 ). World Development Indicators. Available


14.– Verité Research ( 2013 ). Sri Lanka : International Trade – Performance from http ://data.worldbank.org/data-catalog/world-development-indicators.
and Prognosis, Vol. 1. No. 1. November 2013. Colombo . Accessed 3 November 2017.

[ Setting the stage for an export-led era ]


16

Figure 16 : Net FDI inflows to Sri Lanka ( balance of Figure 17 : FDI as a percentage of GDP, comparison
payments ), 2000–2016 ( current US $ millions ) with regional competitors, 2000–2016 ( per cent )

1.200 12,0%

10,0%
1.000 898
8,0%
800 6,0%
US$ MILLIONS

600 4,0%

2,0%
400
0,0%

2000

2002

2004

2006

2008

2010

2012

2014

2016
200

- India Viet Nam


2000
2002
2004
2006
2008
2010
2012
2014
2016

Thailand Sri Lanka

Source : World Bank, 2017.

Factors which explain the challenging performance of in- the institutional structure, roles and functions of the relevant
vestment attraction include the unpredictability of the trad- agencies.16 Moreover, the application of policies has been
ing environment and the limited transparency of policies. highlighted as being ad hoc in nature. The BOI one-stop
This makes Sri Lanka a less attractive investment destination shop has been established but is not yet fully operational17
and limits the willingness of national enterprises to upgrade and investment-related information remains insufficient.
production lines. Some of the critical challenges in attract-
ing FDI include the absence of a clear investment policy and 16.– World Bank Group ( 2016 ). Enhancing Competitiveness in Sri Lanka.
state-of-the-art investment legislation designed according Washington D.C., p.27.
to international best practices and that clearly articulates 17.– World Trade Organization ( 2016 ). Trade Policy Review – Report by the
Secretariat. Sri Lanka. WT/TPR/S/34. Geneva.

Figure 18 : Capital expenditures 2003–2017 by industry clusters ( total : US $ 19.34 billion )

Other
Food, Beverages Transportation,
10%
& Tobacco warehousing…
4%
Physical Sciences
6%
ICT & Electronics Financial Services
6% 16%

Transport
Equipment
7% Construction Tourism
9% Energy 13%
10%

Source : fDi Markets ( 2017 ).

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


17

Although exports have maintained stable growth over the past dec- in low-technology, labour-intensive segments which are vulnerable
ade, systemic issues limit rapid expansion of Sri Lanka’s exports, to cost shifts. SMEs, which account for 80 % of all businesses in
which is reflected in the stagnation of the country’s world export Sri Lanka, still face numerous challenges to engage into exports,
share, among other indicators. Currently, Sri Lankan export engines which strongly limits export diversification potential. In addition,
rely on a blend of traditional industries and growing services sec- compared to its neighbours, Sri Lanka has not successfully tapped
tors. On the industry and manufacturing sides, Sri Lanka has not into FDI as a source of capital and innovation.
been able to diversify away from its traditional export industries,
These systemic challenges create a situation where exports are not
i.e. apparel, tea and rubber. The difficulty diversifying exports is
growing fast enough to be able to remain a strong contributor to the
due to a number of factors, including exports being concentrated
economic growth of Sri Lanka.

THE WINDOW OF OPPORTUNITY – EXPORTS AT THE HEART


OF UPCOMING REFORMS
A number of concurrent circumstances make the NES The time to transform the export sector is now. The cur-
very timely in the recent evolution of Sri Lankan trade. The rent wave of economic reforms for a more transparent and
Government’s Economic Statements of 2015 and 2016 en- flexible business environment, combined with increasing re-
visage a more liberal, simple, transparent and predictable gional trade opportunities and major transformations in pro-
trade regime promoting trade-led growth, driven by export- duction techniques provide a unique window of opportunity
oriented FDI. Several recommendations have been made in for Sri Lanka to modernize and start a new cycle of export
favour of increased export competitiveness and innovation. growth. The NES will enable the country to realize its full po-
These include, among others, the Exporters’ Association tential as an inevitable regional trade hub and a beacon of
of Sri Lanka 2016 and 2017 concept papers, as well as nu- trade openness.
merous studies and research papers, including those by
the Institute of Policy Studies and Verité research, and the
Sri Lanka NTP recently endorsed by the Government.
VISION 2025 SETS THE TONE
The present NES represents a timely catalyst through
which the export sector will be reshaped. The NES is The NES is aligned with Sri Lanka’s policy framework and
aligned with Vision 2025 and the NTP, which both aim to will help achieve the ambitions of Vision 2025 and the
stimulate growth and job creation by improving the abili- NTP. Vision 2025 crystallizes Sri Lanka’s objective of finally
ty of firms to export and compete in foreign markets. The transitioning to an export-led era. Vision 2025 references
NES builds on consensus from the entire export commu- both the NTP and the NES as the main tools to transform
nity about the upcoming tasks and the heaviest roadblocks Sri Lanka into a regional hub of high-value exports :


to be dislodged. It defines a detailed road map for faster
export growth and acknowledges that things need to be
 Become a beacon of openness


done differently if trade is to contribute more to economic
development. and finally enable the export ‘boom’ 

[ Setting the stage for an export-led era ]


18

The NES is in line with specific chapters under Vision 2025. Vision 2025 comes after a succession of opposing eco-
The following elements are the main points of synergy be- nomic and fiscal policies. The first generation of economic
tween the NES and Vision 2025 : and social reforms brought trade liberalization to Sri Lanka’s
economy from 1977. These important reforms largely defined
ƒƒ The Government’s the current institutional, policy and regulatory framework
economic vision  : structuring the country’s trade agenda. However, between
Vision 2025 speci- 1999 and 2009, successive Governments introduced reg-
fies that it aims to ulatory reforms that negatively impacted the openness of
transform Sri Lanka Sri Lanka’s trade regime. The successively opposing eco-
into an export-ori- nomic and fiscal policies of the past 25 years created a com-
ented economic plex trade and business environment that has constrained
hub at the centre of the competitiveness of Sri Lankan exports, creating high
the Indian Ocean, Government debt required to finance growth and crowding
with a knowledge- out investment in innovation. It is now time for a new wave
based, highly competitive, social-market economy. The of reforms in favour of openness and commerce.
development of Sri Lanka as a trade and logistics hub is
at the centre of the NES.
ƒƒ Addressing constraints on growth : Vision 2025 also men- THE WELL-KNOWN CONSTRAINTS
tions the need to reverse all remnants of protectionist THAT REQUIRE URGENT ACTION
policies and remove key regulatory barriers. The NES pri-
oritizes the barriers be removed and adjusted in its PoA. The main constraint to export competitiveness is a com-
ƒƒ New approach to growth : Vision 2025 aims to introduce plicated business environment and institutional set-up.
supportive legal reforms, including setting up a land The fragmented institutional network, costly export proce-
bank. These measures are also included in the NES be- dures and delays in introducing key solutions ( such as a
cause they will benefit exporting industries. single window or a land bank ) are some of the constraints
ƒƒ Improvement of the growth framework : The business which have been impeding export development for decades.
environment of Sri Lanka is one of the main areas of in- While neighbouring countries have managed to take off,
tervention under Vision 2025, which again aligns with Sri Lanka’s export development has remained timid due
the NES. Areas of convergence include upgrading to these and other aforementioned persistent constraints.
Sri Lanka’s ranking in the Doing Business classification,
a review of investment incentive policies, the integration Verité, the Institute of Policy Studies, McKinsey and the
of SMEs into the formal sector, and development of the World Bank have also provided valuable insights into the
logistics hub and services sectors, including tourism. constraints and opportunities for export development and
ƒƒ Technology and digitization : The Vision will favour invest- diversification. The vast majority of studies point towards
ment in the information and communications technology a fragmented regulatory and policy environment, which in-
industry, and digitization of government operations. Both cludes complex protectionist measures and a fragmented
of these are also prioritized in the NES. institutional environment that does not fully service the needs
ƒƒ Strengthening coordination and monitoring implemen- of exporters.
tation : Vision 2025 clearly mentions institutional coordi-
nation and management of implementation as a major The ITC SME Competitiveness Outlook of 2016 provides an
weakness for Sri Lanka. The NES has a clear governance overview of firm-level constraints. It is clear that for firms,
structure and roles and responsibilities, as well as an im- and especially SMEs, the main issues are the capacity to
plementation tracking system. connect and change. These issues are related to outreach
capacities of firms as well as their capacity to innovate their
production base. These will be analysed in further depth in
the review of competitiveness constraints below.

The NES builds on findings and complements them with the testi- the constraints preventing Sri Lanka from becoming a regional
mony of entrepreneurs collected through the consultative Strategy trade and logistics’ hub ; and export diversification and innovation
development process. The constraints identified are structured along constraints. These four main areas were instrumental to defining the
the four main axes that the Strategy will address, namely : policy major strategic objectives of the NES.
and regulatory issues ; market entry and compliance bottlenecks ;

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


19

Figure 19 : SME competitiveness in Sri Lanka – firm abilities

International quality
certificate
100,0
Foreign technology licences Bank account
75,0

50,0
Formal training programme Capacity utilization
25,0

0,0

Investment financed by
Manager's experience
banks

Audited financial statement E-mail Small


Medium
Firm website
Large

Source : ITC ( 2016 ).

Policy and regulatory framework issues

• The fragmented institutional network, both public and pri- • Delays in defining operational guidelines to implement
vate, leads to complicated, delayed and often costly export new / updated regulations / legislation ( Merchant Shipping
procedures. Act, etc. ).
• Unstructured public–public and public–private coordination • Certain industries particularly suffer from remnants of trade-
leads to inconsistent, ad hoc policies and uncertainty for averse policies.
exporters and investors. • Limited availability and performance of modern export credit
• Delays in introducing trade-enabling key solutions ( automa- insurance.
tion, single window, land bank ).

The fragmented institutional network, both public and pri- ( with their peer organizations ). This leads to obvious ser-
vate, leads to complicated, delayed and often costly ex- vice overlaps and creates a complex environment. This
port procedures. Businesses in Sri Lanka face a complex particularly affects SMEs that have insufficient capacity to
web of public institutions, resulting in a fragmented, some- understand and navigate within this framework, which is not
times incoherent and contradictory policy framework. In mul- harmonized with international standards and best practices.
tiple instances, there is more than one institution responsible This complex business environment increases operational
for a specific support function. Institutions also tend to coor- costs for SMEs and exporters, creates delays in exports and
dinate vertically ( with their lead ministry ) and not horizontally discourages informal enterprises from formalizing.

[ Setting the stage for an export-led era ]


20

Unstructured public–public and public–private coordina- Certain industries particularly suffer from remnants of
tion leads to inconsistent, ad hoc policies and uncertain- trade-averse policies. An identified anti-trade bias in tar-
ty for exporters and investors. As mentioned, institutions iffs and taxes raises the price of inputs and protects certain
tend to coordinate in a vertical manner rather than horizon- national industries from international competition, imped-
tally. In addition, there is insufficient public–private coor- ing Sri Lanka’s development of internationally competitive
dination occurring, specifically when developing policies. sectors. Furthermore, trade policy formulation, as well as
Supportive policies, such as Sri Lanka’s competition policy enforcement, remains fragmented, occasionally lacks coher-
and the Electronic Transactions Act, have not yet been able ence and is often not harmonized with internationally adopt-
to create a conducive business environment that support ed standards and best practices. This complex regulatory
SMEs. Many policies are considered either ineffective or bi- framework, together with costly processes, prevents many
ased against the interests of an open, competitive economy. SMEs from competitively participating in trade and benefit-
As an example, SMEs are not able to fully embrace the op- ing from existing support programmes.
portunities of e-commerce due to online financial services
such as Paypal not being accessible in the country. Limited availability and performance of modern export
credit insurance. Awareness among exporters ( especial-
Delays in introducing key solutions ( automation, single ly SMEs ) of the types of export finance solutions available,
window, land bank ). A number of initiatives have been pro- and their costs and benefits, is low. In addition to the cost
posed for many years but have never been implemented, of finance, this low level of awareness is another reason for
despite being crucial for export development. This is par- the low demand for and use of export finance. Exporters
ticularly the case with the land bank and the single window. also lack the technical competency to approach banks for
These two initiatives respond to major constraints associat- financing and to decide on the best financing options. In ad-
ed with land allocation and efficiency of export procedures. dition, there is limited variety, availability and sophistication
The main reason for the delay is the complexity of the insti- of export finance solutions available to companies, with no
tutional landscape mentioned earlier, as well as differences special export credit financing, value chain financing, export
in approaches and policies among institutions. One of the credit refinance window, bilateral export credit lines or export
priorities of Vision 2025 is implementing these solutions, and factoring. Sri Lanka also does not have a development bank
the NES sets the detailed modalities. to assist its enterprises, especially SMEs.18 Finally, the export
finance sector regulatory framework is outdated, especially
Absence of operational guidelines to implement new / up- regarding the repatriation of export proceeds.
dated regulations / legislation ( Merchant Shipping Act,
etc. ). A very common problem is the absence of opera-
tional guidelines to ensure implementation of regulations
which have been gazetted. This adds to the already very
complex legal framework composed of multiple layers of
amendments. In many cases the original regulation dates
back more than 50 years. Simplification of national legis-
lation is a major burden which has been, until now, mostly
avoided because of time constraints. The NES has prioritized 18.– Verité Research ( 2015 ). Expanding Exports : Role and Relevance of
the areas were these reforms are unavoidable. Export Finance.

Market entry and compliance issues

• Difficult access to / availability of relevant and affordable na- • Lack of access to advanced certification and testing facilities,
tional data and market information to make strategic product and prohibitive cost of obtaining such services from abroad.
and market decisions. • Challenging country and product branding requiring efficient
• NQI has limited services available for exporters to comply IP, geographical indication ( GI ) and trademark systems.
with standards in target markets, including no traceability • Targeted export promotion support focuses on few enter-
system or information on applicable international standards prises and markets due to limited resources.
and regulations.
• Limited coordination with foreign missions for data collection
and product promotion in target markets.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


21

Difficult access to / availability of relevant and affordable accredited. In addition, there is no list of required conform-
national data and market information to make strategic ity assessment processes for different product groups and
product and market decisions. On one side, there is a lack people do not know where to find such information. It takes
of proper information about the industries of Sri Lanka, es- producers a lot of time to obtain this information, which of-
pecially in emerging sectors. Statistics related to value chain ten leads to missed opportunities or obtaining services in-
operations have not been recorded properly, which makes ternationally at a higher cost.
it difficult to establish baselines for any development strat-
egy. On the other side, information is also lacking about Challenging country and product branding requiring effi-
markets. Challenges accessing relevant and competitively cient IP, GI and trademark systems. National branding ini-
priced trade information on key markets have been highlight- tiatives for specific industries and for Sri Lanka as a whole
ed as a major constraint to entering new markets. Access to have not yet been implemented. This type of widespread
quality trade intelligence and in-market support from com- initiative requires industry coordination as well as strong in-
mercial attachés remains challenging for many exporters stitutional capacities. The partial coverage of the legal frame-
and SMEs. work and inadequate recourse system for the protection of
IP ( e.g. GIs ), also discourage private investments in brand-
NQI has limited services available for exporters to com- ing, as brands are exposed to copying in target markets.
ply with standards in target markets, including no trace- The current IP registration regime needs to be reviewed and
ability system or information on applicable international fast-tracked, and some missing IP registration tools – such
standards and regulations. A poor quality assurance sys- as GIs, collective marks and database protection – need to
tem, few mutual recognition agreements, a challenged me- be put in place. Finally, Sri Lanka is not a member of the
trology function and the limited ability of local laboratories Madrid and Lisbon agreements, which require that exported
to issue certain international certificates and handle a large products be protected in each individual market.
number of requests all pose major challenges, not just for
SMEs but also for larger enterprises. The uneven regional Targeted export promotion support focuses on few enter-
distribution of laboratories across Sri Lanka, limited capacity prises and markets due to limited resources. Insufficiently
to enforce food safety and consumer protection measures, focused and coordinated promotion of Sri Lankan brands
and outdated legislation make it complicated for enterprises and enterprise support in trade promotion activities curtails
to ensure the quality of products. This is confirmed by the the development of sustainable demand for Sri Lankan
scores of Sri Lanka in the ITC SME Competitiveness Outlook products. While established industries can build on long-
report carried out in 2016. The scores show that getting an term business networks, SMEs and nascent industries face
international quality certificate is among the top five major challenges accessing market information and requirements
constraints faced by SMEs ( see figure 19 ). ( from standards and regulations to licensing requirements ).
Another side of the issue is the limited skills of SMEs to make
Lack of access to advanced certification and testing fa- the most of their participation in fairs and the capacity to
cilities, and prohibitive cost of obtaining such services conduct successful business-to-business ( B2B ) meetings.
from abroad. As mentioned, the NQI in Sri Lanka is lag-
ging in multiple ways, specifically on conformity assessment. Limited coordination with foreign missions for data col-
Testing and certification of certain parameters is not avail- lection and product promotion in target markets. Foreign
able nationally. While several test laboratories operate in the missions are extensively used by other countries to channel
country, the capacities of these are still limited. SLSI and the information, both from the country for promotion, and to the
Industrial Technology Institute ( ITI ) offer a wide range of test- country for market information. They also play a key role in
ing services and private institutions provide some services lobbying for specific product recognition measures in target
in niche areas, and the medical testing laboratories sector markets. These functions are poorly executed by Sri Lankan
is growing. foreign missions due to limited coordination with the private
sector, limited resources of commercial missions and the
Not all laboratories are accredited against International absence of an online system for coordination. There is po-
Organization for Standardization / International Electrotech­ tential to diversify markets for Sri Lanka if coordination with
nical Commission 17025 yet, and in many cases laborato- foreign missions is systematized and broadened.
ries are not in a position to demonstrate their competence or
traceability of measurements because staff capacities, facili-
ties and instruments are insufficient or there are no domesti-
cally available measures – such as suitable inter-laboratory
comparisons, proficiency testing schemes, or certified ref-
erence materials – against which to test their competence.
The calibration capacity required to support all existing
testing laboratories is also insufficient. Very few CABs are

[ Setting the stage for an export-led era ]


22

Trade and logistics hub issues

• Certain legislation impedes the implementation of the single • Challenging expansion of cargo, entrepot, MCC and LCL
window and other TSF reforms. de-stuffing capacity due to delays in reforming procedures,
• Delayed application of ‘expediting shipments’ due to insuf- legislation and institutional frameworks.
ficient warehousing, including cold storage facilities, and the • Limited development of logistics services ( cold storage,
clearance process ( specifically affecting less than container reefers, dry ports, etc. ) outside of the Western Province,
load ( LCL ) and air cargo ) at ports. with limited loading / unloading points along trade corridors.

Certain legislation impedes the implementation of the upgrade its logistics sector and transform into a regional
single window and other TSF reforms. Various border hub. LCL de-stuffing and handling time is long, which af-
procedures and regulations create significant barriers for fects import-related charges. It can take 3–7 days or more
enterprises. Complex requirements exclude SMEs and entre- to unload a consignment due to inadequacies at ports.
preneurs who do not have high business competency from Problems range from lack of infrastructure and equipment
accessing world markets. Many trade-related processes re- to both shortages of labour and overstaffing, limited auto-
main manual and paper-based, with significant duplication mation and labour allocation, and productivity inefficiencies.
of documentation required by different agencies. SMEs in Pilferage and damage due to organized sabotage is also a
particular are often not aware of existing paperless process- serious problem for inbound consignees that depend on im-
es and use paper-based methods. ported inputs for manufacturing and processing. As a result,
export processing is delayed and clearing costs increase.
Implementation of a single window system has been dis-
cussed for many years but never realized. A single window In addition, there are not enough good MCC facilities, as
system would provide a great opportunity to reduce the evidenced by the lack of modern warehouses at ports that
complexity of cross-border formalities if a number of key can support fast pick and pack operations. According
principles are taken into account. First, the implementation to stakeholders, there is only one warehouse with ade-
of the single window should be premised on the reengineer- quate facilities. This issue partly stems from no land be-
ing of trade procedures, with a view to align documentation ing made available for the private sector to operate closer
and information requirements to international standards ( e.g. to Colombo Port. There is no reclaimed land adjacent the
UN Layout Key, WCO data model ) and to remove redundant Colombo International Container Terminal or at productive
processes and information requirements. Second, the single areas around Colombo Port. The logistics corridor between
window project should include the modernization and au- Colombo Port and the international airport in Katunayake
tomation of border regulatory agencies whose operations has a number of suitable locations that can be developed for
are still manual and paper-based. Finally, the single window this purpose but the land bank proposed by the Government
project should entail a large scale review of government- is to identify logistics services areas and the Ministry of
wide and agency-specific acts, regulations and administra- Megapolis and Western Development has already identi-
tive procedures to ensure that Sri Lanka legal framework is fied the proper land in the Megapolis plan, implementation
consistent with the TFA requirements and conducive to the of which will start from 2018. According to stakeholders, land
establishment of the single window. is available on the northern side of Colombo Port and sev-
eral facilities can be easily relocated there in the short term.
The three principles mentioned above have been taken into
account into the recently launched single window initiative There is no multi-user facility for buying / storage / processing
in Sri Lanka. However, it should be noted that two key road- of fresh produce. There are no adequate bonded logistics
blocks still remain : the lack of coordination between cross- centres and existing facilities are not always well connect-
border stakeholders and the difficulty to align agencies’ legal ed. A feasibility study by Expolanka ( industry operator ) de-
frameworks. termined there is no clear demand for such facilities since
private operators use their own facilities and transport us-
Delayed application of ‘expediting shipments’ due to in- ing dry ice. However, no clear market demand to develop
sufficient warehousing, including cold storage facilities, such facilities is explained by limited information and sta-
and the clearance process ( specifically affecting LCL and tistics to support the development of a cold chain industry
air cargo ) at ports. A number of inefficiencies limit logistics and the absence of a detailed study on the need to establish
operations, the upshot of which is that the country cannot such facilities.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


23

Finally, there are no ‘plug and play’ solutions available for environment with maximum automation through a na-
new players to easily establish their operations. Global play- tional single window.
ers need to be attracted to start operations and distribution ƒƒ No paperless transaction and no interconnected Customs
immediately. Therefore, identified locations should be allo- service station for document submission ( when entering
cated quickly, with operational infrastructure such as rail and a port ) included in the Customs Ordinance to facilitate
road connectivity so cargo clearance and movements can logistics operations ( Customs Ordinance of 1869 ).
be performed fast and at low cost. Such plans should be
amalgamated with the Megapolis project and other regional Limited improvements have been made through the
development plans. Automated System for Customs Data ( ASYCUDA ) but the
overall process has not been well-linked to facilitate trade.
Challenging expansion of cargo, entrepot, MCC and LCL
de-stuffing capacity due to delays in reforming proce- Limited development of logistics services ( cold storage,
dures, legislation and institutional frameworks. Outdated reefers, dry ports, etc. ) outside of the Western Province,
laws on logistics activities impede upscaling operations. The with limited loading / unloading points along trade corri-
following laws pose problems : dors. In addition to lacking infrastructure and regulations,
logistics-related services are underdeveloped in Sri Lanka.
ƒƒ Lack of competitive tariffs and laws encouraging MCC : There are no reliable temperature-controlled facilities and
a policy for liberalizing MCC/LCL was presented in the appropriate value adding services along logistics corridors.
last budget but the issuing of the relevant Gazette and The limited capacities of airports and port terminals limits
guidelines amendments has been delayed. volume growth of the industry. The rail networks are un-
ƒƒ A new Customs Act has been drafted but not submitted used / underused for transportation of containers and reefer
to the Cabinet – the existing Customs Ordinance is out- containers, and integrated multimodal connectivity networks
dated. The proposed new Act, which has been drafted are missing. There is also low capacity utilization of vehicles
to facilitate trade in line with World Trade Organization and reefer trucks to transport frozen food. A strategic plan
Trade Facilitation Agreement commitments, needs to be has to be put in place for perishable cargo management that
adopted as a priority. The overall result would be reduced can help exports and domestic consumption costs.
transaction costs, increased speed and a paperless

Export diversification and innovation issues

• High concentration of export industries and services in • An appropriate support framework has not been established
Western Province, with underdeveloped SME / export services to encourage firms to innovate.
networks in other regions. • Insufficient promotion and investment targeting for emerging
• Limited use of modern technologies due to high costs, industries.
limited awareness of new trends and insufficient skills.

High concentration of export industries and services in institutional support and digital networks, and by improving
Western Province, with underdeveloped SMEs / export ser- logistics’ connections.
vices networks in other regions. National development has
until now tended to occur in the Western Province and in ur- Limited use of modern technologies due to high costs,
ban centres, leaving other provinces out, especially in the limited awareness of new trends and insufficient skills.
north. Today, 82 % of Sri Lanka’s population still resides in ru- Although lead firms have emerged in many industries, pre-
ral regions, where the agricultural sector employs most work- senting themselves as examples and using modern technol-
ers.19 SMEs from these less-developed regions face greater ogies to be competitive, smaller firms still struggle to catch
difficulty exporting and have few incentives to do so. This up with global trends. This is especially the case for SMEs in
is also due to the fact that regional export support services the regions. Understanding of the need to upgrade existing
are scarce and tend to be concentrated around Colombo. production lines, as well as the appropriate financial tools
The NES will look into ways to connect these regions through to do so, are limited. Finding appropriate skills locally is a
challenge for firms that need workers able to operate more
advanced technologies in production plants.
19.– World Bank Group ( 2017 ). The World Bank in Sri Lanka – overview.
Available from www.worldbank.org/en/country/srilanka/overview.

[ Setting the stage for an export-led era ]


24

An appropriate support framework has not been estab-


lished to encourage firms to innovate. The first aspect of
this constraint is the challenge for firms to find technolo-
gy transfer schemes or technology advisory services. The
Government has not yet developed the required technolo-
gy transfer programmes and services to support SMEs and
foster regional development. This would be an appropriate
tool and incentive to integrate informal SMEs and regional
firms into national development. National lead firms can be
involved to support and provide guidance for smaller firms.

Another key aspect of this constraint is the mismatch be-


tween academia and the needs of the export industry, due
to limited coordination and a misalignment of incentives.
Links between universities’ research programmes and the
business community are weak. Finally, entrepreneurs and
nascent industries do not benefit from an enabling incuba-
tion environment. Public investment in R&D in Sri Lanka is
much lower compared with other lower middle-income coun-
tries. The lack of R&D options is especially glaring in nas-
cent industries. This is one of the main constraints that slows
down economic diversification in Sri Lanka. The industries
with high potential in Sri Lanka are not prioritized as areas
for research in universities, due in part to the weak links be-
tween higher education, industry and national chambers of
commerce. In the NES, the most-affected industries are pro-
cessed foods and beverages, wellness tourism, the boating
industry, EEC and IT–BPM. 20

Insufficient promotion and investment targeting for emerg- Photo: (cc) - Anushka Wijesinha
ing industries. Investment targeting has been carried out
predominantly in traditional sectors such as apparel, con-
struction and tourism services. Investment can be a tool to specific investment areas, which are listed in each sector
foster economic diversification but has not yet been used strategy. The sector strategies also define the coordination
as such. Emerging sectors under the NES require some mechanisms required to confirm areas of focus along each
sector value chain. Increased investment targeting through
20.– The I&E Strategy provides more details on these issues. key institutions is needed to drive export development.

The analysis of trade patterns, a detailed literature review and the requirements and education ; complex and unpredictable policy
challenges highlighted by public–private stakeholders during the frameworks ; and the need to ensure SMEs are included among the
first NES consultation have brought to light several trade facts. Over country’s exporters. Reforms to the financial, trade and business
the last five years, Sri Lanka has successfully diversified into new environment have been identified as critical to create a new cycle
markets but mainly through traditional products. The findings sug- of growth for the Sri Lankan economy.
gest a number of vulnerabilities in Sri Lanka’s export competitive-
The new wave of reforms aims for Sri Lanka to fully participate in
ness that need addressing.
the global economy through offering knowledge-based competitive
Sri Lanka needs to overcome low levels of R&D and innovation, products and services. The intended and anticipated trade-led growth
high tariffs on imported inputs for production and re-export, and the will enhance export competitiveness and strengthen Sri Lanka not
slow improvement of internal logistics and transportation. There are only in the economic, but also in the social, political, education
further challenges in the country’s limited attraction of investment and health spheres.
to emerging export sectors ; the partial disconnect between skills

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


25

THE TIME IS NOW


– STRATEGIC ORIENTATIONS

The time to transform the export sector is now! The current to drive the reforms required for Sri Lanka to reach its poten-
wave of economic reforms aimed at creating a more trans- tial. It defines a detailed road map for faster export growth
parent and flexible business environment, combined with and acknowledges that things need to be done differently if
increasing regional trade opportunities and major transfor- trade’s contribution to economic development is to increase.
mations in production techniques, provide a unique window
of opportunity for Sri Lanka to modernize and trigger a new The NES addresses some of the root causes which con-
cycle of export growth. The NES will enable the country to strain Sri Lankan exports, while simultaneously encour-
realize its full potential as a regional trade hub and a beacon aging market diversification and development. The broad
of trade openness. scope of the NES ensures that it simultaneously addresses
innovation challenges ; attraction of FDI to productive indus-
The NES is a timely catalyst through which the export sec- tries ; removing unnecessary and challenging regulations ;
tor will be reshaped, as it builds consensus among the en- improving online access to key government services and
tire export community about the upcoming tasks and the trade intelligence ; reducing anti-trade tariffs ; strengthening
heaviest roadblocks to be dislodged. To seize the window quality export compliance across the priority value chains ;
of opportunity, Sri Lanka’s NES proposes a clear-cut strate- and reducing the costs of logistics and doing business.
gic orientation for the public and private sectors to join forces

NES : Blending top-down and bottom-up processes to consolidate national


and sector priorities into a comprehensive implementation framework.

The NES design process provided a rationale for selecting focus The stand-alone sector and TSF strategies focus on their industry-
sectors and TSFs based on their ability to achieve the vision. The specific priorities but also highlight cross-sector priorities such as
NES diagnostics highlighted key national priorities for improved access to technology, development of industry clusters and linking
competitiveness, such as streamlined institutional and regulatory industry to academia. These cross-sector priorities are integrated
frameworks, export finance and improved trade promotion. The main in the main NES.
NES aggregates and consolidates national priorities as well as key
high-level priorities from each sector / TSF into a coherent framework.

VISION AND STRATEGIC OBJECTIVES


Through an inclusive and consultative process, Sri Lanka’s
 Sri Lanka – an export hub driven


industry leaders and public sector representatives defined
the following NES vision : by innovation and investment

[ The time is now – strategic orientations ]


26

Photo: ITC

In order to fulfil this vision, the following strategic objectives of regulations, including the Quarantine Law and Customs
have been identified as the main pillars to structure the ac- Ordinance, as well as reviewing import regulations to
tion planning for an implementable NES. These four broad streamline trade procedures and become an effective trade
objectives, which provide a framework for export develop- hub. The gazetting of the Electronic Transactions Act or the
ment over the next five-year time frame, were considered amendment of the BOI Law will boost the attractiveness of
fundamental for a focused and prioritized NES: the country as an efficient place to do business. The NES
regulatory reform priorities reflect the cross-sectoral needs
of the focus sectors and TSFs. This objective also highlights
1. TO HAVE A BUSINESS-ENABLING, the need for improved export finance and insurance solu-
PREDICTABLE AND TRANSPARENT POLICY tions, and recommends increased involvement of the private
AND REGULATORY FRAMEWORK sector in trade negotiations.
THAT SUPPORTS EXPORTS.
Predictability of regulations and procedures is a priority 2. TO STRENGTHEN SRI LANKAN
for enterprises and exporters to manage operations effi- EXPORTERS’ MARKET-ENTRY
ciently and reduce the costs of doing business. A stream- AND COMPLIANCE CAPACITIES.
lined and transparent regulatory framework is important for
innovators and investors to be able to set up operations in This strategic objective focuses on strengthening two key
Sri Lanka with ease. The private sector considers this ob- TSFs that deliver trade information and promotional sup-
jective fundamental to improve export competitiveness. It port as well as quality compliance services, both of which
focuses on re-engineering processes for improved institu- are necessary to increase exporters’ performance in des-
tional coordination, streamlining administrative procedures tination markets. The improvement of the trade information
and deepening the digitization of trade-related processes. and promotion TSF and the strengthening of the NQI21 will
benefit SMEs, emerging exporters and mature export in-
A transparent and simplified business environment is diffi- dustries alike.
cult to achieve within a fragmented institutional setting and
without re-engineering of business processes within institu- Improved access to market-specific information and analy-
tions. To achieve this objective, the main NES PoA favours ses at a reasonable cost are critical for Sri Lankan export-
initial establishment of an institutional public and private co- ers to understand market opportunities and comply with the
ordination mechanism for trade policy design, formulation regulatory procedures of destination markets. The trade in-
and execution. This key action aims to increase transparen- formation and promotion priorities of the NES strive to im-
cy and coordination between key partners to avoid ad hoc prove data collection, analysis and dissemination processes
policymaking and duplication of efforts. The NES also seeks between key institutions such as EDB, DoC, CBSL, private
improved processes to streamline institutional coordination
and implementation of export development interventions. 21.– A stand-alone NQI Strategy was developed on the basis of the
National Quality Policy – approved by the Cabinet in November 2016,
This objective equally prioritizes updates to Sri Lanka’s reg- the Sri Lanka NQI Gap Assessment was completed by the World Bank
with technical guidance from UNIDO. The NQI Strategy was designed
ulatory environment by amending and reviewing a number with technical assistance from and using the methodology of ITC.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


27

sector chambers of commerce and others, in order to cre- This objective will be achieved through a dual approach of
ate a unique platform for exporters to easily access relevant, increasing transhipment, MCC and commercial hub activ-
up-to-date and affordable market intelligence. This objec- ities for international shipments, while simultaneously en-
tive equally aims to focus trade promotion efforts in line with suring improved services for Sri Lanka’s own transport and
industries’ priorities by increasing engagement with trade exports of goods. A key focus of the Strategy is on reforming
missions, creating a genuine Sri Lankan brand, and ensur- the logistics ecosystem by adjusting key regulations such as
ing exporters’ brand protection by strengthening targeted the Sri Lanka Port Authority Act, Electronic Transactions Act
IP processes. and Commercial Hub Regulations in order to increase the
sophistication and quality of services. The NES also recom-
Quality services in Sri Lanka are relatively developed com- mends provision of adequate facilities – such as warehous-
pared with other lower middle-income countries. Remaining es, bonded logistics centres, common user facilities and
compliance challenges need to be addressed to in- improved rail connections between ports and airports – in
crease enterprises’ ability to satisfy market requirements. order to increase storage capacities, facilitate e-commerce
Strengthening the NQI function will increase the ability of operations, attract more transhipment and increase overall
national institutions to effectively support SMEs’ and export- capacity.
ers’ compliance with market requirements and standards.
The NQI Strategy provides an actionable road map to im- The achievement of this objective depends and builds on
plement the National Quality Policy and improve coordina- Sri Lanka’s World Trade Organization trade facilitation ob-
tion between SLSI, MUSSD, SLAB, the Consumer Affairs ligations implemented by the National Trade Facilitation
Authority, CABs and other institutions responsible for en- Committee and supported by various development part-
suring the quality of products. This objective will also make ners. Recognition of Sri Lanka as a logistics hub depends
testing, adherence to standards and traceability more af- partly on implementing the single window system, rolling out
fordable and accessible, thereby increasing the protection e-payment solutions and increasing the efficiency of border
of Sri Lankan consumers as well as market entry for export- agencies. Improved logistics and trade services will be key
ers. Finally, with the coming free trade agreements to be to increasing Sri Lanka’s own exports of goods.
negotiated by Sri Lanka,22 quality systems, standards and
mutual recognition agreements need to keep pace. The NES
privileges quality management and trade information and 4. TO DRIVE EXPORT DIVERSIFICATION
promotion not only to improve the sustainability of suppli- THROUGH INNOVATION AND BY
er-client relations in third markets but also to improve value STRENGTHENING EMERGING EXPORT
addition of exports.
SECTORS.
This strategic objective will create the conditions to im-
3. TO BECOME AN EFFICIENT TRADE AND plement targeted solutions to develop visionary and
LOGISTICS HUB TO FACILITATE EXPORTS. emerging export sectors. Established export sectors such
as apparel, tea, rubber and coconut products have proven
This objective is critical for Sri Lanka to become a rec- their ability to compete in world markets.23 While these ma-
ognized hub serving Asia and the world. It aims to create ture sectors are the backbone of Sri Lanka’s export perfor-
the conditions for Sri Lanka to leverage its enormous ship- mance, enablement and strengthening of new industries is
ping and logistics potential by strengthening its infrastruc- a priority to empower faster export growth. Most studies of
ture, improving services and attracting the investment and Sri Lanka’s export sector confirm the importance of diver-
skills required for sustainable growth. Handling 5.7 million sifying the export portfolio. The achievement of this ambi-
twenty-foot equivalent container units in 2016, Colombo Port tious objective requires a multidimensional approach to the
is the twenty-third largest port in the world. With other ma- development of productive capacities.
jor commercial ports being expanded and developed, such
as Hambantota for bulk and roll-on / roll-off cargo, Sri Lanka In order to capitalize on the potential of emerging export
has enormous potential to attract additional shipping lines sectors, the NES focuses on implementing necessary na-
to strengthen its status as an internationally renowned mari- tional solutions, while equally targeting industry-specific
time hub. interventions. This dual approach to sector development en-
sures that all priority actions – including regulations, industry

23.– These sectors are driven by strong private sector ownership and
built on the sectors’ competitive advantages. The rubber sector has the
22.– EDB ( 2016 ). The forthcoming Free Trade Agreement ( FTA ) between Sri Lanka Rubber Industry Master Plan 2017–2026 and the textiles sector is
Sri Lanka & China, 14 December. Available from www.srilankabusiness. developing its own new sector strategy. Other important sectors with high
com/blog/the-forthcoming-free-trade-agreement-between-sri-lanka-and- export potential, such as fisheries, are already receiving support to develop
china.html. strategically.

[ The time is now – strategic orientations ]


28

coordination and market development – are properly ad- Innovation is critical to diversify Sri Lankan exports. As inno-
dressed to drive growth in each focus sector. The NES fo- vation creates effects beyond a specific export sector, an in-
cuses on reinforcing new export industries by proactively dependent working group of public and private stakeholders
improving the provision of skills to support the growth of was appointed by the Prime Minister to design a stand-alone
these industries ; attracting investment, technologies and I&E Strategy.24 The implementation of this I&E Strategy will
knowledge into these promising sectors ; and supporting support the NES priority to reorient R&D and innovation to
integration of SMEs from across Sri Lanka into the export support the needs of emerging export sectors.
value chain. For each focus sector, specific measures aim
to improve competitiveness through practical solutions such
as facilitated access to competitively priced inputs, improved 24.– The I&E Strategy of Sri Lanka was developed independently of the
NES, by MoDSIT with the technical assistance of the World Bank. The
production techniques or enabled industry clusters in dedi- NES and I&E Strategy jointly contribute to build innovation in exports and
cated BOI zones or special economic zones. entrepreneurship of SMEs.

THE FOLLOWING SCHEMATIC ENCAPSULATES THE NES STRATEGIC ORIENTATIONS

Our export development vision :

‘Sri Lanka: An Export Hub Driven by Innovation and Investment’

Guided by four strategic objectives :

To To To
have a business strengthen drive export
To become an
enabling, predictable Sri Lankan diversification
efficient trade and
and transparent policy exporters’ through
logistics hub
and regulatory market-entry innovation and
to facilitate exports
framework that supports and compliance by strengthening
exports capacities emerging sectors

Improved business environment for all export sectors through :


Logistics

Trade Information and Promotion

National Quality Infrastructure

Innovation and Entrepreneurship

Six focus sectors for innovation and export diversification :

Electrical and Processed


Wellness Boat Spices and
IT-BPM Electronic Food and
Tourism Building Concentrates
Components Beverages

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


29

PRIORITIZED TRADE SUPPORT warehousing facilities, and simplified and predictable trade
FUNCTIONS facilitation measures. These TSFs target key horizontal di-
mensions of trade that affect the overall competitiveness of
Building on the vision and the strategic objectives described Sri Lanka’s export sector.
above, the Sri Lanka NES includes TSF strategies that tar-
get horizontal dimensions of trade affecting the overall com- As part of Sri Lanka’s NES, the following TSFs were pri-
petitiveness and efficient functioning of the entire export oritized for focused intervention : trade information and
sector. Examples of such TSFs include testing products in promotion, NQI, logistics and innovation and entrepre-
laboratories ( quality ), market analysis and trade promotion neurship. The priority TSFs are presented and discussed
activities, access to credit guarantee schemes, access to in greater detail in the following section.

Trade information and promotion


Rationale Developing a strategy to organize trade information and promotion services is crucial to enabling exports.
Challenges in accessing relevant and competitively priced trade information on key markets were
highlighted as a major constraint to entering new markets by small and large exporters. Access to quality
trade intelligence and in-market support from commercial attachés remains challenging for many exporters
and SMEs. Insufficiently focused and coordinated promotion of Sri Lankan brands and enterprise support
on trade promotion activities curtails the development of sustainable demand for Sri Lankan products.
While established industries can build on long-term business networks, SMEs and nascent industries face
challenges accessing market information and requirements ( from standards and regulations to licensing
requirements ). Another side of the issue is the limited skills of SMEs to make the most of their participation
in fairs and the capacity to conduct successful B2B meetings.
How the • Improved, standardized and quality access to data and information through the proposed ‘export promo-
Strategy tion portal’ on existing and new markets for international trade and foreign investment.
will support • Enhanced access for SMEs, both regional and Colombo-based, to international markets and new op-
exporters portunities.
• Targeted and informed trade promotion in destination markets in collaboration with trade attachés and
sector associations.
• Enriched international branding of Sri Lanka and its sectors from a strategic perspective, boosting the
country’s image for trade and investments.
Strategic • Improve the quality, reliability, accessibility and affordability of trade information and promotion services.
orientations • Build the capacity of SMEs and emerging exporters to collect and analyse trade information and conduct
export promotion.
• Strategically augment trade promotion programmes with focused interventions.

NQI
Rationale The NQI in Sri Lanka requires a strategic approach to increase its effectiveness and efficiency, as it is a key
export support service and is lagging. However, considering Sri Lanka’s need to address quality challenges
beyond the sole needs of exporters and to allow implementation of the recently developed National Quality
Policy, the NQI Strategy was spun off from the NES and carried forward as an individual initiative with a
cross-cutting perspective. The NES and the NQI Strategy were both initiated to improve the competitiveness
of Sri Lanka’s trade, and are thus interdependent to successfully boost the ability of exporters to comply with
market requirements.
How the • Build awareness and understanding about quality in the private sector and general public.
Strategy • Streamline food safety control in Sri Lanka.
will support • Develop national standards in line with newly developing economic sectors.
exporters • Reinforce the overall institutional coordination in the NQI.
• Align the NQI with international best practice.
• Strengthen technical capacities of NQI core institutions.
• Promote the participation of national technical institutions ( SLSI, SLAB, MUSSD ) in international technical
forums.
• Initiate the development of an umbrella legal framework for the NQI.
• Broaden the metrology function.
• Strengthen and broaden conformity assessment in Sri Lanka.
Strategic • Implement the National Quality Policy and improve the institutional framework of the NQI.
orientations • Achieve international recognition to the NQI system of Sri Lanka.
• Strengthen the NQI framework to support general socioeconomic development.

[ The time is now – strategic orientations ]


30

Logistics
Rationale Strategically located in South-East Asia, at the crossroads of the fastest-growing region in the world,
Sri Lanka is close to many emerging markets and is already an important regional logistics hub. The
overall performance of port-related services has been improving. Total container handling in 2016
increased by 10.6 % to 5.7 million twenty-foot equivalent container units, up from 5.2 million handled in
2015.
While Sri Lanka is one of the major transhipment hubs in Asia, the logistics industry has not fully tapped
the growing opportunities in transhipment and e-commerce. There is a unique opportunity to develop
a world-class logistics hub and enter the global supply chain industry that is rapidly digitizing and
evolving with a new generation of consumers.
Sri Lanka aims to transform into South Asia’s leading maritime, logistics and distribution hub to
support the national economy. This will be achieved by fostering the right regulatory environment
and implementing enabling procedures and guidelines for provision of efficient logistics services.
These actions will create the conditions for the private sector to lead development of the logistics
sector, attract the investment needed to install the proper facilities across the country ( cold storage
solutions and multi-user facilities ) and provide value added services through MCC, LCL de-stuffing and
commercial hub activities.
How the • Streamline regulatory and institutional reforms to improve Sri Lanka’s attractiveness as a logistics
Strategy hub servicing Asia.
will support • Increased capacities of ports and airports to provide value added services through MCC, LCL de-
exporters stuffing, e-commerce and commercial hub activities.
• Targeted sector and investment promotion in overseas destination markets.
Strategic • Create an enabling and efficient business environment driven by technology and public–private
orientations coordination.
• Ensure adequate facilities and the availability of a qualified labour force.
• Promote the global image of Sri Lanka as a logistics hub.

Innovation and Entrepreneurship ( I&E )25


Rationale Sri Lanka is already a middle-income country, but no country has retained this status without strongly
supporting the Innovation and Entrepreneurship agenda. As salaries continue to increase, Sri Lanka
will not be able to compete in labour-intensive industries. To enable firms to drive of economic growth,
innovation will become a key differentiator in existing industries ( from food processing to electronics
and devices ). Better use of technologies from nanotechnology, biotechnology, mechatronics, robotics
and artificial intelligence can contribute to bring make the economy more diversified and resilient. The
country has to support the development of human capital and growth entrepreneurs in knowledge-
intensive industries if we want to become competitive and achieve high middle-income status.
How the The I&E Strategy will support exporters by :
Strategy • Upgrading SME quality for competitiveness and exports ;
will support • Supporting linkages between large anchor companies and export-oriented start-ups ;
exporters • Introducing/enhancing incentives for technology adoption ;
• Improving the business environment to foster growth-oriented start-ups ;
• Improving access to finance, especially early-stage ;
• Aligning the public R&D system with private sector needs ;
• Developing Intellectual Property framework to promote research commercialization ;
• Developing national technology transfer capacities.
Strategic The I&E Strategy envisions “a resilient innovative economy and entrepreneurial society for export
orientations competitiveness and better jobs”. The I&E Strategy is designed to be enterprise centric, ensuring that
all strategic objectives keep the needs of the enterprise sector at the forefront. It promotes commercial,
scientific and technological merit and fosters collaboration amongst all actors.
The three key strategic objectives are to :
• Support SMEs in developing higher value-added products and services for exports ;
• Build the ecosystem for scaling growth-oriented start-ups ;
• Modernize and re-align the public R&D sector.

25.– The I&E strategy was developed in parallel with the NES process, by MoDSIT, MSTRD and MIC, with technical assistance from the World Bank.
This I&E strategy is complemented by “Innovating Sri Lanka’ developed by the Ministry of Science Technology and Research with COSTI

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


31

Photo: mpfb

FOCUS SECTORS FOR EXPORT DIVERSIFICATION


Recent export growth in Sri Lanka has primarily been FOCUS SECTOR STRATEGIES
achieved by intensification of exports through the provi-
sion of larger volumes of existing products to established Based on the quantitative data provided, secondary crite-
customers. Export growth has also benefited from some ria and mentioned considerations, the following NES focus
market diversification, in which existing products have been sectors were selected through an inclusive and consulta-
exported to new markets. Only 2 % of the growth was gener- tive process :
ated through exporting new products.
Focus sector Type of industry Growth trend
Export diversification is considered a favourable poli- IT–BPM Services Mature
cy objective because it supports more resilient growth Wellness tourism Services Emerging
for middle-income economies. Diversification is consid- Spices and concentrates Agriculture Mature
ered beneficial to emerging economies because it leads to
Boating industry Manufacturing Visionary
less market failures until a certain level of GDP per capita is
reached. Hence, low- and middle-income countries mostly Processed foods Agriculture Emerging
and beverages
diversify along the extensive margin, whereas high-income
countries diversify along the intensive margin and ultimate- EEC Manufacturing Visionary
ly refocus their exports towards fewer products.26 This NES
supports the export diversification efforts of Sri Lanka.
Sectors which have not been selected as focus sectors
NES focus sectors were selected based on a number of are nevertheless supported by the NES through the imple-
quantitative and qualitative analytical parameters. Export mentation of TSF strategies. Comprehensive cross-sector
potential analyses were the starting point in the decision- support ensures that the scope of the NES goes beyond the
making process. A variety of sectors were analysed on the focus sectors. Functional areas including quality manage-
basis of current / past export performance, global import de- ment, trade information and logistics are necessary support
mand, market access conditions ( tariffs, distances ) and per- areas that impact every enterprise.
centage of unused potential ( per specific markets ).27
Individual strategies with detailed PoAs were developed
for each of these focus sectors. The individual value chain
26.– Hausmann, R. and Rodrik, D. ( 2003 ). Economic development
and market opportunities analyses can be found in each of
as self-discovery. Journal of Development Economics, vol. 72, issue 2,
pp. 603–633 ; and Cadot, O., Carrère, C. and Strauss-Kahn, V. ( 2007 ). these strategies. The following section presents the main
Export Diversification : What’s behind the Hump? The Review of Economics thrusts of each sector strategy.
and Statistics, vol. 93, no. 2, pp. 590–605.
27.– The methodological process related to sector selection is detailed in
appendix 5.

[ The time is now – strategic orientations ]


32

IT–BPM
Rationale In the past 10 years, the Sri Lankan IT–BPM industry has expanded by 300 % to reach US $ 1.2
billion in export revenue. The sector provides employment to more than 80,000 professionals and
contributes 12 % of Sri Lankan services exports. Compared with other export sectors, the IT–BPM
sector has shown great potential to increase export revenue. Sri Lankan IT–BPM companies have
demonstrated their competitiveness internationally. This competitiveness rests on reasonable costs,
high-quality services and an educated workforce with exceptional skills.
This Strategy identifies two specific areas as priorities for implementation. First, create a business-
enabling environment and address policy and regulatory bottlenecks swiftly, providing the
necessary institutional support to improve marketing and promotion of the sector. Second, launch a
‘champion builder’ programme to target firms with exponential growth potential that collectively can
help boost sector export revenue by US $ 2 billion.
Main market • Reaching new markets with traditional IT products and developing new products : mixed reality,
opportunities augmented reality and Internet of Things solutions where software and hardware come together.
• Increasing the offer of knowledge process outsourcing services ( financial and accounting opera-
tions, data and document conversion ).
• Enlarging market outreach to provide BPM services and technical support to large multinational
corporations.
What the Strategy • Produce pipeline SMEs and create bigger champions.
will change • Move up IP valuation and high technology product engineering
Strategic • To support investment and exports in the IT–BPM sector through a business-enabling, predictable
orientations and transparent policy and regulatory framework.
• To drive export growth through I&E.
• To improve the supply of skilled, highly qualified professionals to satisfy IT–BPM market growth.
• To grow champion firms ( ‘the $2 billion plan’ ).

Wellness tourism
Rationale ‘Wellness’ is a buzzword in the tourism sector and beyond. Being a global phenomenon, ‘wellness’
can come in many different forms. International travellers with wellness ( or health ) in mind look for
services that are based on local traditions and natural assets. There is growing demand for hotels
with a health orientation, as well as for facilities with a well-defined specialization or concept.
Sri Lanka has strategic advantages for the development of its wellness tourism sector. There is a
clear synergy between global trends and Sri Lanka’s traditional health approaches. The country has
natural and traditional endowments that can be used to foster a sustainable wellness tourism value
chain that is deeply rooted in local communities and traditions.
Main market • Anchor market development on a strong quality assurance mechanism for existing German and
opportunities Japanese markets, and to be able to diversify into new ones.
• Moved to new untapped markets, such as the United Kingdom, Sweden, the Russian Federation
and Eastern Europe, and Gulf states and business cities in the Far East.
• Diversify wellness from the Ayurvedic offer into new geographic areas ( small-scale developments
such as Shinrin-yoku, herbal gardens or others ).
What the Strategy • Develop a framework for this nascent sector, both institutional and regulatory, to ensure controlled
will change expansion and avoid negative impacts ( quality, environment, reputation, etc. ).
• Support gazetting of the Ayurveda Act and complement it with additional regulations for other
wellness services to establish a strong quality assurance system.
• Foster R&D efforts, develop IP protection and support branding and promotion of the industry.
Strategic • Develop coordination between traditional and Western health tourism.
orientations • Set up a quality assurance system for wellness and traditional health systems.
• Build information about the Sri Lankan health tourism sector and about its target markets.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


33

Spices and concentrates


Rationale Sri Lanka, the ‘Spice Island’, has always been renowned for its spices and its extracts or
concentrates. The spices and concentrates sector plays a valuable role not only in boosting
export earnings but also in enhancing the rural economy and social development. The spices
and concentrates industry in Sri Lanka is composed of a large variety of products, ranging from
bulk spice products of true cinnamon to value added essential oils. The sector is dominated by
smallholders, with over 70 % of cultivated land being smallholdings and home gardens. Sri Lanka
exports around 30,000 tons of various kinds of spices annually.
At present, Sri Lanka is the ninth most important exporter of spices ( cinnamon, pepper, cloves,
cardamom, and nutmeg ) in the world, with total spices exports reaching US $ 273 million in 2016.
Sri Lanka is the largest producer and exporter of ‘true cinnamon’ in the world.
Main market • Product diversification into production of ‘spice mixes’ and spice-based sauces.
opportunities • Increase market penetration into existing markets by improving product quality, enhancing pack-
aging and labelling, and increasing production volumes.
• Diversify to new markets, alongside existing ones, with ‘spice mixes’ and spice-based sauces.
• Organized production of organic and Fairtrade spices and their extracts for existing and new
markets.
What the Strategy • Increased quality and quantity of spices produced in Sri Lanka with successfully implemented
will change Good Agricultural Practices and Good Management Practices.
• The country will be seen globally as an innovative player in value added spice exports, a step up
from its current status as a bulk spices exporter.
Strategic • Strengthen, integrate and simplify the policies and governance framework relating to spices, led
orientations by industry stakeholders.
• Improve the production and productivity of Sri Lanka’s spices sector by ensuring quality control
and safety compliance as per global standards.
• To be a globally recognized as an innovative player in the value added ( pharmaceuticals, nutra-
ceuticals, food flavours and fragrances ) spice market segment.

Boating industry
Rationale Sri Lanka intends to expand its boating industry – now focused almost solely on commercial
vessels – and make the country a renowned recreational boating hub and yacht service centre for
the Indian Ocean. A boating industry includes not only the boatbuilding sector but also after-sales
services ( including refitting and repair ), marina services, associated recreational services such as
boat charters and all services connected with the efficient use of any vessel.
Sri Lanka’s strategic geographical location at the crossroads of the main maritime routes in South
Asia, combined with the Sri Lankan boat industry’s long experience, can make the country an
attractive maritime hub that provides a full range of services for a boat’s entire life cycle, including
assembly, refuelling, refit and repair for numerous types of boats, including both seagoing and
inland watercraft.
Main market • A full range of services for the full boat life cycle : assembling, refuelling, refit and repair services
opportunities for various types of boats.
• Expanding production of recreational boats for export to the EU market and emerging regional
markets ( Maldives, Singapore, Viet Nam, Kenya ).
• Production of new boat models for the fishing and boating industry.
• Boating tourism : sailing, marina services, chartering and boat rental.
What the Strategy • Enable an increase in production through creation of industry clusters.
will change • Improved industry performance through partnerships and targeted innovation.
• Generate manufacturing employment while also diversifying the tourism offer of Sri Lanka.
Strategic • To create an enabling environment for industry development by updating regulations and infra-
orientations structure.
• To raise the industry’s performance through partnerships and targeted innovation.
• To enhance national and international visibility of Sri Lanka’s boating industry.

[ The time is now – strategic orientations ]


34

Processed food and beverages


Rationale Processed food and beverages is a booming sector in Sri Lanka and is diversifying. Sri Lankan
products are high quality and have healthy characteristics due to the excellence of local raw
materials and the industry’s commitment to investment in manufacturing processes and improving
its market image. Leading firms already established in the sector can serve as inspiration for
smaller companies.
Today, the Sri Lankan processed food and beverages sector appears ready for its next growth
surge. Although starting from a low base, growth in exports has demonstrated the interest in and
markets for Sri Lankan products. Export growth over the last few years clearly shows that the
country is in a good position to increase food and beverage processing and transform it into a
major industry, turning the sector into a leading foreign exchange earner and a standard-bearer for
high-quality Sri Lankan products abroad.
Main market • Develop new products based on already well-performing healthy foods ( healthy biscuits, coconut
opportunities milk as a replacement for cow’s milk, coconut-based dairy, etc. )
• Increase awareness about the uniqueness of Sri Lankan food and cuisine.
What the Strategy • Increase the quantity of local raw materials and enable imports so exporters can diversify into
will change markets requiring larger quantities.
• Increase cooperation between processors and producers and foster investment in commercial
farming.
• Focus R&D and skills development initiatives in food and beverages processing.
• Develop a Sri Lankan cuisine brand and foster product development.
Strategic • Amend the regulatory framework in line with the needs of the sector.
orientations • Ensure consistent supply of raw materials for the sector.
• Cater to high-quality markets.

Electronics and electrical components ( EEC )


Rationale The EEC sector is an up-and-coming sector for Sri Lanka, with the potential to stimulate innovation,
R&D and investment in the country. It is well-positioned to benefit from the EEC industry’s
steadily increasing levels of manufacturing in Asia, and can contribute to the diversification and
technological upgrading of Sri Lanka’s exports.
Three main approaches could make the EEC sector successful in the next five years. First, leverage
the country’s existing capacity in electronics manufacturing services while increasing production of
electrical parts and products. Second, work to become a component manufacturing base for large
multinational brands by linking with the software industry, thus helping Sri Lankan producers move
up the value chain. Finally, leverage innovative ideas available in academia and industry to focus
on a few high-tech products such as robotics or Internet of Things devices, among other growth
opportunities.
Main market • Making Sri Lanka a contract manufacturing services hub for the region.
opportunities • Emphasize electrical parts and products manufacturing for original equipment manufacturers
from India.
• Become a leading component manufacturing base.
What the Strategy • Improve the brand and positioning of the EEC sector and make it more competitive.
will change • Enable industry–Government collaboration for cluster development and links with academia.
• Build a strong, skilled workforce for the EEC sector, including enthusiastic and innovative youth.
Strategic • Be recognized as a key national export and employment sector.
orientations • Establish Sri Lanka as a value added electronics manufacturing hub.
• Make existing industry players more globally competitive.
• Improve supply of semi-skilled and skilled professionals to satisfy the EEC sector.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


35

MOVING TO ACTION

THE STRATEGIC FRAMEWORK


The strategic objectives define the main thrusts that will
guide Strategy implementation to achieve the vision. The
main NES PoA responds to this vision by addressing nation-
al-level constraints of the export sector in order to leverage
opportunities in a comprehensive manner. To this end, the
strategic and operational objectives outlined in Figure 20 are
prioritized for NES implementation.

Figure 20 : Strategic framework

To have a business -enabling, To drive export diversification


predictable and transparent To strengthen Sri Lankan through innovation and by
exporters’ market-entry and To become an efficient trade and
policy and regulatory framework logistics hub to facilitate exports strengthening emerging export
compliance capacities
that supports exports sectors

•Establish institutional public •Strengthen the quality •Provide adequate facilities and •Attract investment into
and private coordination for infrastructure to support the systems to increase the number promising new sectors to spur
effective trade policy, design, compliance capacity of and quality of logistics economic diversification
formulation and execution exporting companies operations •Proactively improve national
•Restructure and streamline Sri •Ensure a constant flow of the •Diversify logistics services and skills development for
Lanka’s regulatory framework to latest trade information so expand logistics operations emerging sectors
ensure transparency and exporting companies can adjust •Increase shipping capacities to •Reorient R&D and innovation
minimize overlapping mandates their offering take advantage of regional trade initiatives to support the needs
to meet the modern demands of •Create a genuine national flows of NES sectors
exporting image for customers abroad, •Support SME integration in the
•Channel exporters’ concerns built on branding and economy, including in the
into trade negotiations promotion regions, and support the
•Expand the export finance •Strengthen IP protection for Sri establishment of start -ups
sector to provide everything Lankan exports
required for a trade hub

The development of the main NES PoA intervened at the fi- national-level issues. The combination of both allows a com-
nal stage of the strategy design process. This PoA builds on prehensive main PoA to be built which creates coherence
the significant amount of information collected during the among all sector and TSF PoAs under the NES. The logic
NES design and organizes it in a structured and prioritized followed is shown in Figure 21.
manner. The content of the main PoA is essentially drawn
from two different sources : the cross-cutting issues that
arose from the sector or TSF strategies and well-identified

[ Moving to action ]
36

Figure 21 : Logic for the definition of the main NES PoA

The purpose of the national PoA is to ensure coherence is develop a national PoA, since they tend to be very specific
created between the sector and TSF PoAs, in order to avoid and lose sight of broad national objectives. This is why the
dispersion of efforts and overlap of interventions, and to fa- national PoA integrates activities that are national in nature
cilitate intervention monitoring under the NES. At the same and complement the cross-cutting sector issues. This brings
time, sector and function PoAs cannot be the only source to all the NES under a coherent implementation framework.

FOCUSING ON NES IMPLEMENTATION SINCE DAY ONE


The NES is part of Sri Lanka’s overall trade policy frame- institutional support to exporters, and strengthen private sec-
work and its implementation is part of the Government’s tor capacities to respond to market opportunities. A coherent
overall trade agenda. The NTP prioritized the need to im- and resourced coordination structure ensures that national
plement an ‘export strategy consisting of policy tools, spe- trade development efforts do not occur in isolation and are
cific projects, sector-specific time-bound targets, expected aligned to priorities defined by national policymakers and
results and a monitoring mechanism’. The NES provides industry stakeholders.
a coherent framework for prioritized interventions by the
Government, private sector and international partners to In order to fast-track implementation of NES priorities, it
address Sri Lanka’s export challenges and leverage mar- was essential to ensure the necessary conditions for im-
ket opportunities. plementation and coordination were rapidly operational.
With this in mind, the Government and private sector rep-
The NES ensures the translation of export development pri- resentatives agreed on a NES governance structure to be
orities into implementable projects. The implementation of operational in early 2018. A coherent and resourced NES
priorities through an efficient coordinated framework will implementation framework was defined to ensure national
lead to the translation of NES priorities into implementable trade development efforts are aligned to priorities defined
projects to help reform the regulatory framework, optimize by industry stakeholders.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


37

A TRANSPARENT PUBLIC-PRIVATE implementing NES priorities will ensure that implementation


GOVERNANCE FRAMEWORK responsibilities are assigned effectively, resources are used
efficiently, transparency of information leads to accounta-
Export competitiveness cuts across ministries, national bility, and key public–private operators effectively support
agencies, subnational institutions, industry associations implementation.
and private sector organizations. Hence, without transpar-
ent national public–public as well as public–private coordi- Each NES priority sector and TSF recommended the for-
nation for export development, it would be challenging to malization of a regular and structured public–private co-
achieve targets and export competitiveness would continue ordination mechanism to effectively steer each industry’s
to underperform. As such, the governance mechanism for development.

Figure 22 : NES Management and coordination structure

NES Implementation through government institutions

Cabinet

MoDSIT
NES Management Unit EDB facilitation of
(housed at MODSIT) Advisory Committees

Committee of Chairs of Advisory committee

Export “Advisory Committees” (Gazetted)


(4 year appointment)

IT-BMP Electronic Components


Spices & concentrates Boat Building Industry
Wellness Tourism Processed Food & Beverages
BOI – Sector and Investor
Other Advisory committees
Targeting PDIA teams

Logistics

Trade Information

Temporary – National Quality Infrastructure

Export advisory committees were revamped and reorgan- Export advisory committees are composed of private and
ized to give them more influence and capacity to steer public sector representatives mandated to steer the devel-
their export industry development strategically. This pub- opment of specific export industries in a strategic manner.
lic–private coordination mechanism works within the existing The committees are operational and responsible for guiding
legal framework of Sri Lanka. The Export Development Act the implementation of their respective sector and TSF strat-
( 1979 ) grants the EDB the following power : ‘On advice from egies. With EDB support, the committees are responsible
the Board, the Minister may by Order in the Gazette, estab- for providing strategic direction to a specific export indus-
lish advisory committees for the development and promo- try, and have advisory roles in the implementation of trade
tion of certain products, product groups and commodities development interventions.
as well as functional aspects of trade’.

[ Moving to action ]
38

A committee of Chairs of advisory committees will ensure


oversight and coherence in implementation across the
sector and TSF strategies. This additional advisory commit-
tee will maintain active cross-sectoral public–private coordi-
nation to guide overall NES implementation in coordination
with the highest level of Government.

Photo: (cc) pixabay

A key NES priority – a formal high-level trade governance council

A key recommendation provided by the vast majority of the 556 influences trade performance and promotes expansion of
participants of the NES design process was to ( re )establish a high- exports.
level formal public–private mechanism responsible for coordinating • In Singapore, the Committee on Singapore’s Competitiveness
all trade development interventions, including the NES, and reduce ( CSC ) was established May 1997 through a directive from
duplications among trade-related institutions ( see main NES PoA – the President of Singapore to the Ministry of Trade and
1.1.1 ). The membership is to be appointed in a transparent manner. Industry. The CSC is composed of 15 members representing
The council is to be chaired by the President or Prime Minister. The government ministry leaders, private sector leaders, banking
council should reduce ad hoc trade policymaking and oversee the institution representatives and trade union representatives.
implementation of trade-related initiatives.
• In March 2015, Malaysia’s Ministry of International Trade
A high-level trade steering body is best practice. and Industry established a National Export Council chaired
by the Prime Minister. The Council aims to boost exports
• In the United States, the President’s Export Council per-
through better facilitation, including improving processes,
forms the overarching advisory function in the domain of
procedures, regulations and documentation for exports ;
international trade. This council advises the President on
infrastructure ; certification requirements ; and logistics.
crucial Government policies and programmes, which in turn

A NES MANAGEMENT UNIT TO MAINTAIN agencies, industry associations, private sector organizations
THE MOMENTUM OF IMPLEMENTATION and development partners to ensure coordination in the im-
plementation of the NES. Additionally, the NES Management
A NES Management Unit is operational at MoDSIT to co- Unit will track the progress of implementation and prepare
ordinate and monitor implementation of Sri Lanka’s NES. progress reports to be shared with export advisory commit-
The Management Unit reports to the Secretary of MoDSIT tees, MoDSIT and the highest level of Government. Finally,
and is primarily responsible for ensuring the PoAs adopted it will work in close collaboration with key implementers to
under the NES are implemented in a timely and efficient guide the development and submission of annual national
manner. The NES Management Unit is composed of full-time budget proposals relevant for NES implementation.
staff seconded from key trade-related national institutions of
Sri Lanka. It will work in close coordination with the private Implementation responsibility rests with the leading nation-
sector and the Ministry of National Policies and Economic al institutions identified in the NES PoAs. Public and private
Affairs ( MoNPEA ) and the Ministry of Finance ( MoF ) to pro- representatives have identified in the NES PoAs one respon-
gramme and monitor NES implementation. sible public or private institution responsible for implementing
priority activities. Public institutions have been consulted to
In collaboration with the advisory committees, the NES integrate NES priorities into their annual planning cycle and
Management Unit will support and guide implementing national budget proposals. Planning units of the Government
partners in the programming and delivery of priority pro- will refer to the NES PoAs for guidance in programming.
jects. The NES Management Unit is responsible for ensur- Private sector institutions will implement their own NES pri-
ing the NES PoAs are implemented in a timely and efficient orities, as the private sector is the greatest beneficiary of
manner by working closely with relevant ministries, national NES implementation.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


39

Figure 23 : NES annual programmatic cycle across key implementing partners

Tracking and
monitoring contribu-
tion to strategy
implementation

Projects implemented Strategy Programming


in line with strategy management activities in line with
priorities framework strategy priorities

Resource,
identification,
allocation and
mobilisation

CONCLUSION : IMPLEMENTATION HAS ALREADY


STARTED WITH THE 2018 NATIONAL BUDGET
During the NES design process, ‘quick win’ recommenda-
tions for accelerating export development were identified
by all focus sectors and TSFs. These financial and non-fi-
nancial ( regulatory reform ) recommendations were revised
by relevant implementing institutions, MoF and MoNPEA.
Quick-win activities prioritized for rapid implementation
ranged from regulatory upgrading to enabling SME partici-
pation in exports, strengthening visionary sectors and in-
creasing promotion of Sri Lankan products.

The National Budget 201828 has already allocated crit-


ical resources to national institutions in order to fast-
track implementation of NES priorities. This confirms the
Government’s commitment to rapidly transform and up-
grade Sri Lanka’s export sector.

The NES provides a clear road map for the entire export
community concerning the interventions required to trans-
form the Sri Lankan export sector. With NES implemen-
tation supporting the objectives of Vision 2025 and the
NTP, the country can now realize its full potential as a re-
gional trade hub. Photo: mpfb

28.– See appendix 2 for a list of supported National Budget interventions


for 2018.

[ Moving to action ]
40

To achieve the vision and strategic objectives discussed, a robust, • Start / end dates : The desired time frame of the activity.
actionable and realistic strategic PoA is required. This is provided • Targets : Quantifiable targets that allow completion monitor-
in the section below and constitutes the planning instrument of ing of the activity during the implementation stage.
the NES.
• Leading implementer : One single accountable lead institu-
The PoA is structured along the four strategic objectives and the tion per activity. ( The institution may also have a technical
operational objectives described above. For each objective, the PoA role or may have only an oversight and coordination role. )
outlines detailed activities and their implementation modalities, • Supporting implementing partners : Any institution that
which include : should be involved at any stage of the activity’s implementation.
• Priority level : Priority 1 being the highest and priority 3 • Indicative costs (US $) : An estimate of the activity’s cost
the lowest. for the total implementation period.

Photo: World Bank Photo Collection, © Dominic Sansoni

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


THE NATIONAL PLAN
OF ACTION
2018–2022
42

STRATEGIC OBJECTIVE 1 : TO HAVE A BUSINESS-ENABLING, PREDICTABLE AND TRANSPARENT POLICY AND
REGULATORY FRAMEWORK THAT SUPPORTS EXPORTS
Strategic Operational Activity Priority Start date End date Targets Leading Supporting Indicative Link with sector
objectives objectives implementing implementing costs and TSFs
partner partners ( USD ) strategies
1. To have 1.1 : Establish 1.1.1 Establish a high-level formal public–private 1 01/04/2018 31/12/2018 High-level public–private Ministry of Ministry of National 25,000  
business- institutional, mechanism that will be responsible for coordinat- mechanism established and Development Policies and Economic
enabling, public and private ing all trade development interventions, includ- operational. Strategies and Affairs ; Ministry of
predictable and coordination for ing the NES, among all responsible ministries and International Finance ; Export De-
transparent effective trade institutions. The membership will be appointed in a Trade velopment Board ;
policy and policy, design, transparent manner. The council will be chaired by Exporters Association
regulatory formulation and the President or Prime Minister. It will reduce ad hoc of Sri Lanka ; Ceylon
framework execution trade policy meetings and oversee the implementa- Chamber of Commerce
that supports tion of trade-related initiatives. The mechanism will ( CCC ) ; National Cham-
exports. pay particular attention to : ber of Exporters of
• Ensuring transparency in information Sri Lanka ( NCE ) ; Fed-
dissemination and in decision-making and eration of Chambers of
composition. Commerce in Sri Lanka
• Conducting regular meetings and ensuring ( FCCISL )
accountability.
• Defining clear terms of reference and internal
rules and regulations.
• Evaluating the council’s and members’
performance.
• Dual party representation.
1.1.2 Elaborate a clear guide for trade policy formu- 2 01/04/2019 31/12/2022 • Guide for trade policy Ministry of Department of Com- 5,000  
lation and execution at national and sectoral level to formulation developed Development merce
ensure effective public and private consultation. • Training to policy makers Strategies and
provided International
Trade
1.1.3 Establish EDB advisory committees for NES 1 01/04/2018 31/12/2020 • Advisory committees Export Develop- Ministry of Develop- 50,000 Boat building:
focus sectors and TSFs, as well as other priority established and operational. ment Board ment Strategies and 2.4.1 ; IT-BPM:
export sectors. Enable committees with operational • Quarterly meeting of advisory International Trade ; 1.1.1 ; Logistics:
support, ensure transparency in appointment of committees held and minutes Exporters Association 1.2.1 ; Electrical

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


members, and avoid duplication in other commit- compiled, shared with EDB of Sri Lanka ; The Cey- and electronic
tees. Advisory committees to be consulted on key Board, Minister and, as lon National Chamber components:
NES related topics such National Budget proposals, required, National Economic of Industries ; Ceylon 1.3.2 ; Processed
regulatory reforms, branding, R&D focus, investment Council Chamber of Com- foods and bever-
targeting, etc. Include regional representation within • Biannual meeting of merce ( CCC ) ; National ages: 3.7.2 ; Trade
committees. Committee of Chairs held and Chamber of Exporters information and
Establish a “special” Committee of Chairs of Ad- minutes compiled, shared of Sri Lanka ( NCE ) ; promotion: 1.3.2 ;
visory Committees to meet biannually to focus on with Minister and National Department of Com- Spices and con-
national level issues/opportunities and report to the Economic Council merce centrates: 1.2.1
highest authorities.
Strategic Operational Activity Priority Start date End date Targets Leading Supporting Indicative Link with sector
objectives objectives implementing implementing costs and TSFs
partner partners ( USD ) strategies
1. To have 1.1 : Establish 1.1.4 Ensure the land bank initiative is implemented 1 01/04/2018 31/12/2020 • Land bank established and To be finalized
Ministry of Develop- 350,000 Boat building:
business- institutional, in a timely manner to facilitate access to land for responding to NES focus by Ministry ment Strategies and 1.3.1 ; Processed
enabling, public and private focus export sectors and supply chains ( direct and sector requirements of Lands and International Trade ; foods and bever-
predictable and coordination for indirect ). Ensure land needs of NES focus sectors Parliamentary Ministry of Finance ; ages: 2.1.1 ; Lo-
transparent effective trade ( Boat, IT, Processed food, and logistics, etc. ) are Reforms Ministry of Provincial gistics: 1.1.8
policy and policy, design, properly considered. Ensure a clear process and Councils and Local
regulatory formulation and policy for land allocation is defined and transparent. Government ; Ministry
framework execution See sector/TSFs strategies for more details of Megapolis and West-
that supports ern Development
exports. 1.2 : Restructure 1.2.1 Ensure amendment of the following regula- 1 01/06/2018 31/12/2022 Following regulations amended • Ministry of Ministry of Industry and 100,000 IT-BPM: 1.3.1,
and streamline tions and acts that are currently impeding NES focus • Quarantine and Prevention Development Commerce ; Ministry of 1.3.2, 1.4.1 ;
Sri Lanka’s sectors and TSFs growth. of Diseases Ordinance Strategies and Development Strategies Logistics: 1.1.5,
regulatory See individual sectors and TSFs for more details : ( Processed Food and International and International Trade ; 1.1.3, 1.1.14 ;
framework Beverages, Spices, Quality ) Trade NES Ministry of Transport Processed foods
to ensure • Quarantine and Prevention of Diseases Ordinance Management and Civil Aviation ; and beverages:
( Processed Food and Beverages, Spices, Quality ) • Customs Ordinance No. 17 of
transparency 1869 ( Logistics ) Unit Ministry of Agriculture ; 1.1.1
and minimize • Customs Ordinance No. 17 of 1869 ( Logistics ) Ministry of Telecom-
• Civil Aviation Act No 14 of 2010 ( Logistics ) • Civil Aviation Act No 14 of
overlapping 2010 ( Logistics ) munication and Digital
mandates to • Food Act No. 26 of 1980 ( Processed Food and Infrastructure ; Ministry
Beverages, and Quality ) • Food Act No. 26 of 1980
meet the modern ( Processed Food and of Finance ; Ministry of
demands of • Finance Act No. 12 of 2013 ( Logistics ) Higher Education and
• Merchant Shipping Act No. 52 of 1971 ( Logistics ) Beverages, and Quality )
exporting • Finance Act No. 12 of 2013 Highways ; Ministry of
• VAT Act No. 14 of 2002 ( IT-BPM ) Ports and Shipping ;
• Fauna and Flora protection Act No. 22 of 2009 ( Logistics )
• Merchant Shipping Act No. 52 Sri Lanka Customs ;
( Boat Building ) Ministry of Mahaweli
• Insurance and Industry Act No. 43 of 2000 ( Boat of 1971 ( Logistics )
• VAT Act No. 14 of 2002 Development and En-
Building ) vironment ; Ministry
• Ayurveda Act No. 31 of 1961 ( Wellness Tourism ) ( IT-BPM )
• Fauna and Flora protection of Health, Nutrition &
• Universities Act No.16 of 1978 ( IT-BPM and Indigenous Medicine
Electronic and Electrical components ) Act No. 22 of 2009 ( Boat
• Companies Act No. 7 of 2007 ( IT-BPM ) Building )
• Insurance and Industry Act No.
Additional amendements may be suggested through 43 of 2000 ( Boat Building )
Advisory Committees

[ The National Plan of Action 2018–2022 ]


• Ayurveda Act No. 31 of 1961
( Wellness Tourism )
• Universities Act No.16 of 1978
( IT-BPM and Electronic and
Electrical components )
• Companies Act No. 7 of 2007
( IT-BPM )
1.2.2 Review labour regulations, including the Em- 1 01/04/2018 31/12/2022 • Labour regulations updated Department of Ministry of Develop- 50,000 IT-BPM: 1.3.3 ;
ployment of women, young persons and children Labour ment Strategies and Processed foods
Act No. 24 of 2006, to adjust the compensation International Trade ; The and beverages:
formula and facilitate night shift approval procedures Employers’ Federation 1.3.2
for women. of Ceylon ; SLASSCOM
43
44

Strategic Operational Activity Priority Start date End date Targets Leading Supporting Indicative Link with sector
objectives objectives implementing implementing costs and TSFs
partner partners ( USD ) strategies
1. To have 1.2 : Restructure 1.2.3 Ensure streamlining of gazetting of the follow- 1 01/06/2018 31/12/2022 • Guidelines for the Electronic • Ministry of Ministry of Telecom- 20,000 Wellness tourism:
business- and streamline ing regulations and operational guidelines : Transactions Act in place Development munication and Digital 2.3.2 ; Logistics:
enabling, Sri Lanka’s • Electronic Transactions Act, including e-payment, • Ayurveda Act gazetted Strategies and Infrastructure ; Ministry 1.1.12
predictable and regulatory e signature, e-documents and tracking ( NES ) • Trade Remedy Law gazetted International of Ports and Shipping ;
transparent framework • Ayurveda Act ( Wellness tourism ) and operational guidelines Trade NES Information and Com-
policy and to ensure • Trade Remedy Law published Management munication Technology
regulatory transparency Unit Agency ( ICTA ) ; Depart-
framework and minimize ment of Commerce
that supports overlapping ; Ministry of Health,
exports. mandates to Nutrition & Indigenous
meet the modern Medicine
demands of 1.2.4 Ensure development of the following new 2 01/04/2019 31/12/2022 • Recreational crafts regulatory • Ministry of Ministry of Ports and 50,000 Boat building:
exporting regulations : framework for navigation Development Shipping ; Ministry of 1.1.1 ; National
• Develop new maritime anti-trust laws in line with • Maritime anti-trust laws Strategies and Science,Technology quality infrastruc-
international best practices to establish Sri Lanka developed and gazetted International and Research ture: 1.2.3 ; Logis-
as a maritime nation. • NQI law developed and Trade NES tics: 1.1.11
• Draft an umbrella law defining the whole NQI and gazetted Management
institutions’ interactions, including conformity Unit
assessment.
1.2.5 Amend the Sri Lankan visa regime along the 2 01/04/2019 31/12/2021 • Fast-track visa and other Department of Ministry of National 20,000 IT-BPM: 2.3.1,
following lines : residency requirements for Immigration and Policies and Economic 3.3.2 ; Wellness
• Include fast-tracking of visa and other residency diaspora available. ( IT-BPM ) Emigration Affairs ; Ministry of In- tourism: 3.4.1
requirements for diaspora. ( IT-BPM ) • Short-term business visas for dustry and Commerce ;
• Facilitate short-term business visas for disaster disaster recovery/business Ministry of Develop-
recovery/business continuity services ( IT-BPM ) continuity services facilitated ment Strategies and
• Amend the immigration regulation by introducing ( IT-BPM ) International Trade ;
new visit purposes categories : wellness, • Immigration regulation for Exporters Association
Ayurvedic treatment, medical and hospitalization, wellness, Ayurvedic treatment, of Sri Lanka ; Ceylon
transit. ( Wellness tourism ) medical and hospitalization, Chamber of Commerce
etc. available ( wellness ( CCC ) ; National Cham-
tourism ) ber of Exporters of
Sri Lanka ( NCE ) ; Fed-

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


eration of Chambers of
Commerce in Sri Lanka
( FCCISL )
Strategic Operational Activity Priority Start date End date Targets Leading Supporting Indicative Link with sector
objectives objectives implementing implementing costs and TSFs
partner partners ( USD ) strategies
1. To have 1.2 : Restructure 1.2.6 Ensure the following regulatory modifications 1 01/04/2018 31/12/2020 Amendments to necessary acts Ministry of Central Bank of Sri Lan-   Wellness tour-
business- and streamline are completed to ease investment inflow to NES and regulations completed, Development ka ; Ministry of Industry ism: 2.3.4 ; Boat
enabling, Sri Lanka’s focus sectors : including Section 16 of the BOI Strategies and and Commerce ; Minis- building: 1.1.5 ;
predictable and regulatory • Modify BOI legislation ( section 16 of the Board of Law on joint ventures International try of Finance ; Ministry IT-BPM: 1.2.3,
transparent framework Investment Law No. 4 of 1978 ( BOI Law ) ) to allow Trade of Higher Education 1.3.6
policy and to ensure subleasing of space to partners by setting up a and Highways ; Board of
regulatory transparency joint venture ( Boat Building ) Investment ( BOI )
framework and minimize • Regulatory constraints on closing down a
that supports overlapping business – closing down fee and directors’
exports. mandates to personal liability. ( IT-BPM and Electronic and
meet the modern electrical components )
demands of • University Grants Commission Act to make it
exporting easier for university companies to invest and
operate in Sri Lanka, to encourage hi-tech
spin-offs. ( IT-BPM and Electronic and electrical
components )
• Approval of construction permits in the Wellness
tourism and health sectors ( based on developed
national standards ). ( Wellness Tourism )
1.2.7 In line with Trade Facilitation Agreement, make 1 01/04/2018 31/12/2020 • Regulations published Department of Ministry of Develop- 30,000  
it mandatory for all border agencies to publish regu- Commerce ment Strategies and
lation procedures, applicable fees and timelines. International Trade ;
Sri Lanka Customs ;
Ceylon Chamber of
Commerce ( CCC )
1.2.8 Establish a provision of a sufficient grace 3 01/04/2018 31/12/2022 • Grace period in place, giving Ministry of Ministry of Industry and    
period for the private sector to adapt to the relevant enterprises adequate time to Development Commerce ; Ministry
regulatory reviews ( with the exception of the regu- comply with new regulations Strategies and of Finance ; Sri Lanka
lations that do not allow for advance notice, e.g. after their adoption International Customs
positive changes in Customs duties or additional Trade
charges ). Put in place a notification system once
new regulations are issued.

[ The National Plan of Action 2018–2022 ]


1.3 : Channel 1.3.1 Establish systematic and formalized private 2 01/04/2018 31/12/2022 • Systematic consultations Ministry of Export Development 50,000 Processed foods
exporters’ sector consultations, in coordination with advisory held in advance of any Development Board ; Exporters As- and beverages:
concerns committees, prior to trade negotiations, and gather trade negotiations with Strategies and sociation of Sri Lanka ; 3.5.2
into trade the necessary information to build the case for the relevant industries advisory International Ceylon Chamber of
negotiations negotiation. committees. Trade Commerce ( CCC ) ;
National Chamber of
Exporters of Sri Lanka
( NCE ) ; Federation of
Chambers of Com-
merce in Sri Lanka ( FC-
CISL ) ; Department of
Commerce
45
46

Strategic Operational Activity Priority Start date End date Targets Leading Supporting Indicative Link with sector
objectives objectives implementing implementing costs and TSFs
partner partners ( USD ) strategies
1. To have 1.3 : Channel 1.3.2 Provide regular capacity-building and develop 2 01/04/2018 31/12/2022 • Annual training for trade Department of Ministry of Develop- 30,000  
business- exporters’ guidelines for trade negotiators about multilateral negotiators completed Commerce ment Strategies and
enabling, concerns trading systems and a trade negotiations framework. • Standardized methodology on International Trade ;
predictable and into trade trade negotiation defined and Export Development
transparent negotiations utilized Board
policy and 1.4 : Expand the 1.4.1 Introduce new export finance solutions to 1 01/04/2018 31/12/2022 All five new services introduced Ministry of Fi- Central Bank of Sri Lan- 1,000,000  
regulatory export finance improve exporters’ competitiveness. Such new solu- by 2022 : nance ka ; Ministry of Devel-
framework sector to provide tions include : opment Strategies and
Special export credit financing
that supports everything International Trade
• Special export credit financing for SMEs willing to for SMEs willing to engage in
exports. required for a engage in exports. exports.
trade hub • Value chain financing ( especially directed towards • Value chain financing
agribusiness SMEs and farmers’ associations, in ( especially directed towards
order to mitigate price risks ). agribusiness SMEs and
• Bilateral export credit lines and buyer credit to farmers’ associations, in order
minimize risks in new target markets. to mitigate price risks ).
• Export factoring. • Bilateral export credit lines
• Special credit schemes targeting first-time and buyer credit to minimize
exporters as a special group. risks in new target markets.
Funding could be provided through Exim Window of • Export factoring.
development bank. • Special credit schemes
targeting first-time exporters
as a special group.
1.4.2 Set up a development bank, integrating an 2 01/04/2018 31/12/2022 • Development bank set up, with Ministry of Fi- Central Bank of 65,000,000  
Exim window to provide exporter-specific services Exim window operational nance Sri Lanka ; Ministry of
and particularly encourage new exporters and small • SLECIC upgraded Development Strategies
exporters. The services in activity 1.4.1. could be and International Trade ;
integrated in this bank. Sri Lanka Export Credit
Simultaneously to setting up the development bank, Insurance Corporation
conduct a review and upgrading of Sri Lanka Export ( SLECIC ) ; Sri  Lanka
Credit Insurance Corporation guarantees to reduce Banks Association
the cost of export insurance premiums.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


1.4.3 CBSL Governor to establish an export credit 1 01/04/2018 31/12/2022 • Export credit refinancing Central Bank of Ministry of Develop- 5,000,000  
refinancing window to encourage banks to provide window operational Sri Lanka ment Strategies and
export credit in general and to NES sectors in par- • Export credit finance solutions International Trade ;
ticular. promoted to exporters through Ministry of Finance ;
export promotion portal ( EDB ) Sri Lanka Export Credit
Insurance Corporation
( SLECIC ) ; Sri  Lanka
Banks Association
STRATEGIC OBJECTIVE 2 : TO STRENGTHEN SRI LANKAN EXPORTERS’ MARKET-ENTRY AND COMPLIANCE CAPACITIES.
Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs ( USD ) sector
partner and TSFs
strategies
2 : To 2.1 : Strengthen 2.1.1 Establish the National Quality 1 01/04/2018 31/12/2018 • NQC Established Sri Lanka Stand- Ministry of Fisheries and Aquatic Resources ; 2,000,000 National qual-
strengthen the quality Council ( NQC ), with strong political and operational ards Institution Ministry of Development Strategies and Inter- ity infrastruc-
Sri Lankan infrastructure backing, monitoring capabilities and ( SLSI ) national Trade ; Ministry of Agriculture ; Ministry ture: 1.1.1
exporters’ to support the decision-making power. Elaborate TOR, of Plantation Industries ; Ministry of Rural Eco-
market-entry compliance Constitution, and Budget allocated as nomic Affairs ; Sri Lanka Accreditation Board
and compliance capacity of indicated in NQP. The NQC should have ( SLAB ) ; Export Development Board ; Industrial
capacities. exporting real authority with proper governance and Technology Institute ( ITI ) ; Exporters Associa-
companies adequate financial and human resources. tion of Sri Lanka ; Ceylon Chamber of Com-
See National Quality Infrastructure Strat- merce ( CCC ) ; National Chamber of Exporters
egy for more details of Sri Lanka ( NCE ) ; Federation of Chambers of
Commerce in Sri Lanka ( FCCISL ) ; Department
of Commerce ; Ministry of Health, Nutrition
& Indigenous Medicine ; Measurement Units,
Standards and Services Department ( MUSSD ) ;
Ministry of Science,Technology and Research ;
Import and Export Control Department ( IECD ) ;
Consumer Affairs Authority
2.1.2 In order to reduce the costs and 2 01/04/2018 31/12/2022 • 30 new CAB Ministry of Devel- Sri Lanka Accreditation Board ( SLAB ) ; Sri Lanka 500,000 National qual-
complications of testing, inspection accredited opment Strategies Standards Institution ( SLSI ) ; Export Develop- ity infrastruc-
and certification services for SMEs and services per and International ment Board ; Industrial Technology Institute ture: 2.1.1
exporters, establish use of public and year ( financial Trade ( ITI ) ; Arthur C Clarke Centre for Modern Tech-
mainly private Conformity Assessment assistance to nologies ( ACCMT ) ; Department of Commerce
Bodies. Support with demand schemes CABs to accredit ; Measurement Units, Standards and Services
in accordance with national requirements. + technical Department ( MUSSD ) ; Department of Agricul-
Support accreditation of third party pri- training ) ture ; Sri Lanka Association of Testing Laborato-
vate CABs, ensuring mutual recognition. ries ( SLATL )
See National Quality Infrastructure strat-
egy for more details
2.1.3 Establish a national database of 1 01/04/2018 31/12/2022 • National Sri Lanka Ac- Sri Lanka Standards Institution ( SLSI ) ; Export 50,000 National qual-

[ The National Plan of Action 2018–2022 ]


existing conformity assessment capabili- database in place creditation Board Development Board ; Industrial Technology In- ity infrastruc-
ties in all accredited measurement labo- ( SLAB ) stitute ( ITI ) ; Measurement Units, Standards and ture: 2.1.3
ratories and non-accredited third party Services Department ( MUSSD ) ; Sri Lanka As-
CABs, universities, other research and sociation of Testing Laboratories ( SLATL )
development organizations, the military
and specialized organizations such as
Customs and food safety. This database
should ensure information comparability
and compatibility to be used in product
traceability systems
See National Quality Infrastructure strat-
egy for more details
47
48

Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs ( USD ) sector
partner and TSFs
strategies
2 : To 2.1 : Strengthen 2.1.4 Establish a regular standards 2 01/04/2018 31/12/2022 • 10 technical To be finalized by Ministry of Plantation Industries ; Sri Lanka 500,000 National qual-
strengthen the quality update mechanism to align with interna- standards revised Ministry of Sci- Standards Institution ( SLSI ) ; Export Develop- ity infrastruc-
Sri Lankan infrastructure tional standards updates. Support SLSI per year, in key ence, Technology ment Board ; Industrial Technology Institute ture: 3.2.1,
exporters’ to support the standardization committees and stand- sectors and Research ( ITI ) ; Department of Commerce ; Ministry 3.2.2
market-entry compliance ardization units outside SLSI to cater to of Health, Nutrition & Indigenous Medicine ;
and compliance capacity of the needs of key sectors, including a Department of Agriculture ; Coconut Research
capacities. exporting comprehensive standard for social, envi- Institute ( CRI )
companies ronmental and ethical practices. NQC will
lead implementation once established.
See National Quality Infrastructure strat-
egy for more details
2.1.5 Build the capacity of MUSSD to 1 01/01/2018 31/12/2022 • Ten CMCs, Ministry of In- Ministry of Development Strategies and Inter- 300,000 National qual-
fulfil all requirements to include their per year, are dustry and Com- national Trade ; Sri Lanka Accreditation Board ity infrastruc-
Calibration and Measurement Capabili- included in the merce ( SLAB ) ; Sri  Lanka Standards Institution ( SLSI ) ; ture: 2.2.1
ties ( CMCs ) in the Key Comparison Data- KCDB Measurement Units, Standards and Services
base ( KCDB ) ( as part of the International Department ( MUSSD ) ; Sri Lanka Association of
Committee for Weights and Measures Testing Laboratories ( SLATL )
Mutual Recognition Agreement. )
See National Quality Infrastructure strat-
egy for more details
2.1.6 Define and provide new accredita- 1 01/04/2018 31/12/2022 • One new Sri Lanka Ac- Ministry of Foreign Affairs ; Export Development 200,000 National qual-
tion services ( e.g. certification of persons accreditation creditation Board Board ; Department of Commerce ; Ministry of ity infrastruc-
– ISO/IEC17024 ; providers of proficiency service per year ( SLAB ) Science,Technology and Research ture: 2.4.1
testing schemes – ISO/IEC 17043 ; prod- • Technical person
ucts, processes and services certifica- hired to support
tion – ISO/IEC 17065 ; reference mate- SLAB
rial producers – ISO 17034 ). Accredit
institutions under the newly developed
services.
See National Quality Infrastructure strat-

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


egy for more details
2.2 : Ensure 2.2.1 To complement the trade portal, 1 01/04/2018 31/12/2022 Export promotion Export Develop- Central Bank of Sri Lanka ; Exporters Associa- 700,000 Logistics:
a constant develop an “export promotion portal” to portal is operational ment Board tion of Sri Lanka ; Ceylon Chamber of Com- 1.1.4 ; Trade
flow of the provide market intelligence to exporters. based on ToRs de- merce ( CCC ) ; National Chamber of Exporters information
latest trade Appoint a working group to coordinate fined by a technical of Sri Lanka ( NCE ) ; Federation of Chambers of and promo-
information trade information provision and to de- team of trade infor- Commerce in Sri Lanka ( FCCISL ) ; Department tion: 1.1.2
so exporting velop the export promotion portal. Enable mation providers. of Commerce
companies can access to the export promotion portal for
adjust their regional chambers of commerce ( Jaffna,
offering Galle, Kandy, Hambantota, Uva and other
regions ).
See Trade Information and Promotion
strategy for more details
Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs ( USD ) sector
partner and TSFs
strategies
2 : To 2.2 : Ensure 2.2.2 Implement a nationwide promotion 3 01/04/2019 31/12/2022 • Targeted Export Develop- Central Bank of Sri Lanka ; Exporters Associa- 20,000 Trade infor-
strengthen a constant campaign in English, Sinhala and Tamil, promotional ment Board tion of Sri Lanka ; Ceylon Chamber of Com- mation and
Sri Lankan flow of the in both traditional and online media, to campaign merce ( CCC ) ; National Chamber of Exporters promotion:
exporters’ latest trade inform SMEs and exporters of available launched and of Sri Lanka ( NCE ) ; Federation of Chambers of 2.1.1
market-entry information TIP services, and present the focal insti- implemented Commerce in Sri Lanka ( FCCISL ) ; Department
and compliance so exporting tutions at national and regional levels. • More SMEs of Commerce
capacities. companies can See Trade Information and Promotion access trade data
adjust their strategy for more details. and information
offering
2.2.3 Develop and roll out a standardized 2 01/04/2018 31/12/2022 • Standard simple Export Develop- Export Development Board ; Exporters Associa- 100,000 Trade infor-
training course, periodically, to build the training modules ment Board tion of Sri Lanka ; National Chamber of Exporters mation and
capacities of sector associations ( e.g. designed of Sri Lanka ( NCE ) ; Federation of Chambers of promotion:
Sri Lanka Energy Managers Association, • Training Commerce in Sri Lanka ( FCCISL ) ; Department 2.2.1
Spice Council, etc. ) and regional cham- provided to of Commerce
bers in online research, data collection, Colombo-based
market profiling, marketing / promotion associations and
techniques, and preparation for trade ToTs for regional
fairs. outreach
See Trade Information and Promotion
strategy for more details.
2.3 : Create 2.3.1 Support and enhance the already 1 01/04/2018 31/12/2020 • The National Export Develop- Ministry of Industry and Commerce ; Ministry 5,000,000 Boat build-
a genuine established ‘national branding com- Export and ment Board of Foreign Affairs ; Exporters Association of ing: 3.2.1 ;
national image mittee’ composed of public and private Investment Sri Lanka ; Ceylon Chamber of Commerce Electrical and
for customers stakeholders to develop the branding Branding ( CCC ) ; National Chamber of Exporters of electronic
abroad, built and marketing position, as well as sec- Committee is Sri Lanka ( NCE ) ; Federation of Chambers of components:
on branding tor sub-brands developed with advisory reinforced Commerce in Sri Lanka ( FCCISL ) 1.2.2 ; IT-
and promotion committees. • National export BPM: 4.2.1 ;
See individual sector strategies and the and investment Wellness
Trade Information and Promotion strategy branding tourism:
for more details. position and 3.1.1, 3.2.1 ;
material ready for Processed
dissemination foods and

[ The National Plan of Action 2018–2022 ]


• Umbrella beverages:
branding 3.6.1 ; Trade
and sector information
sub-brands and promo-
developed tion: 3.1.1 ;
with advisory Logistics:
committees 3.1.3
49
50

Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs ( USD ) sector
partner and TSFs
strategies
2 : To 2.3 : Create 2.3.2 Expand trade information and 2 01/04/2018 31/12/2022 • Representations Department of Ministry of Industry and Commerce ; Ministry 2,000,000 Boat building:
strengthen a genuine promotion organisations’ collaboration actively promote Commerce of Foreign Affairs ; Board of Investment ( BOI ) ; 3.1.2 ; Well-
Sri Lankan national image with Sri Lanka’s foreign representations. investment Export Development Board ; Exporters Associa- ness tourism:
exporters’ for customers Collaboration areas include : Channeling and trade with tion of Sri Lanka ; Ceylon Chamber of Com- 2.4.1, 3.5.2 ;
market-entry abroad, built of first-hand trade intelligence from target Sri Lanka with the merce ( CCC ) ; National Chamber of Exporters Processed
and compliance on branding markets, including regulatory changes ; help of targeted of Sri Lanka ( NCE ) ; Federation of Chambers of foods and
capacities. and promotion Organisation of B2B meetings with key support materials Commerce in Sri Lanka ( FCCISL ) beverages:
buyers in target markets ; Training and ( brochures, etc. ) 3.7.1 ; Trade
supporting commercial attachés’ on • Information information
promotion of key priority sectors, etc ; channel and promo-
organisation of a globally synchronized mechanism tion: 1.2.2,
event to Brand Sri Lanka, its exports and established 3.1.2, 3.2.1,
investment opportunities ; identification with key target 3.2.2 ; IT-
of ‘fairs’ and commercial events in target markets BPM: 2.1.3 ;
markets related to priority export sectors • Periodical Logistics:
with update of ‘list of events’ in the “ex- event in foreign 3.1.2 ; Spices
port promotion portal”. representations and concen-
In cases where there is no trade attachés organised trates: 3.1.2
in a target market, appoint honorary • Information
councils to conduct trade promotion on about new fairs
behalf of the private sector channeled
to “export
See individual sector strategies and Trade promotion
Information and Promotion strategy for portal”
more details
2.3.3 Build up and organise annual inter- 2 01/04/2018 31/12/2022 • Annual trade Export Develop- Ministry of Development Strategies and Inter- 500,000 Electrical and
national trade fair( s ) in Sri Lanka, inviting fair( s ) organised ment Board national Trade ; Ministry of Finance ; Board of electronic
importers and buyers from all over the and promoting Investment ( BOI ) ; Arthur C Clarke Centre for components:
world to expose Sri Lankan brands. NES priority Modern Technologies ( ACCMT ) ; Exporters 2.1.2 ; Boat
See individual sector strategies and Trade sector. Association of Sri Lanka ; National Chamber of building:
Information and Promotion strategy for • Sri Lankan Exporters of Sri Lanka ( NCE ) ; Federation of 3.1.3 ; Trade
brands promoted Chambers of Commerce in Sri Lanka ( FCCISL ) information

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


more details
and promo-
tion: 3.1.3
Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs ( USD ) sector
partner and TSFs
strategies
2 : To 2.4 : Strengthen 2.4.1 Build up value creation through 1 01/04/2018 31/12/2022 • IP registration National Intel- Export Development Board ; Department of 100,000 Electrical and
strengthen IP protection intellectual property : regime lectual Property Commerce electronic
Sri Lankan for Sri Lankan • Review the IP registration legal regime streamlined Office components:
exporters’ exports to fast-track the IP protection process • Support provided 2.2.3 ; Well-
market-entry for enterprises. on IP registration ness tourism:
and compliance • Add missing IP registration tools such for focus export 2.1.2 ; Pro-
capacities. as GIs, collective marks and database industries. cessed foods
protection. and beverag-
• Identify suitable IP rights to provide es: 3.1.6 ; IT-
protection to newly developed BPM: 1.4.2 ;
products and develop international Spices and
strategies for registration of brands concentrates:
( trademarks, collective marks, or 3.2.2
patents in case of inventive products ).
See individual sector strategies and Trade
Information and Promotion strategy for
more details
2.4.2 Achieve membership of the Madrid 2 01/01/2019 31/12/2022 Sri Lanka is mem- National Intel- Ministry of Industry and Commerce ; Ministry of 50,000  
and Lisbon agreements to increase ac- ber of the Madrid lectual Property Development Strategies and International Trade
cess and protection for trademarks and and Lisbon agree- Office
patents. ments

[ The National Plan of Action 2018–2022 ]


51
52

STRATEGIC OBJECTIVE 3 : TO BECOME AN EFFICIENT TRADE AND LOGISTICS HUB TO FACILITATE EXPORTS.
Strategic Operational Activity Priority Start date End date Targets Leading implementing Supporting Indicative Link with
objectives objectives partner implementing partners costs ( USD ) sector
and TSFs
strategies
3 : To become 3.1 : Provide 3.1.1 Carry out a feasibility study ( private sector ex- 2 01 / 04 / 2018 30 / 06 / 2019 • Feasibility study Ministry of Finance Ministry of National 50,000 Logistics:
an efficient adequate perts and University of Moratuwa ) on the necessity of completed Policies and Economic 2.2.2
trade and facilities and installing multi-user facilities to provide tempera- • Recommendations Affairs ; Ministry of
logistics hub systems ture-controlled storage ( bonded logistics centres ). implemented Higher Education and
to facilitate to increase Release of reefer storage, using reefer containers in Highways ; Ministry of
exports the number ports and creation of multi-user facilities, cold stor- Ports and Shipping ;
and quality age, etc. would help transportation and collection of Ministry of Mahaweli
of logistics perishables and the food processing sector, which Development and En-
operations currently suffers a high percentage of post-harvest vironment; Ministry of
losses. Implement recommendations. Lands and Parliamen-
See Logistics strategy for more details tary Reforms
3.1.2 Formulate an action plan to build scale and 1 01 / 05 / 2018 31 / 12 / 2022 • Action plan developed Ministry of Develop- Ministry of National 30,000 Logistics:
volume through key performance indicators and and implemented ment Strategies and Policies and Economic 2.2.3
ensure implementation. For this, all Government • KPI developped under International Trade Affairs ; Ministry of Fi-
institutions related to TF ( SLPA, MoPS ) to develop each institution nance ; Ministry of Ports
and maintain key performance indicators to monitor and Shipping ; Exporters
institutions’ performance and to improve the county’s Association of Sri Lan-
LPI, Ease of Doing Business and Global Competitive- ka ; The Ceylon National
ness Index rankings. Chamber of Industries;
Link to Logistics strategy for more details Ceylon Chamber of
Commerce ( CCC ) ;
National Chamber of
Exporters of Sri Lanka
( NCE )
3.1.3 Finalize and implement the single window 1 01 / 04 / 2018 31 / 12 / 2022 • Single window Ministry of Develop- Ministry of Finance ; 2,000,000  
system road map ( currently being completed ) to es- established and ment Strategies and Sri Lanka Customs ;
tablish a centralized system to execute all documents coordination International Trade Export Development
related to foreign trade operations. Align institutional mechanism in place Board ; Department of
foundation legislation to enable institutions to use Commerce

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


the system.
Standardize and unify the documents and data
requested by all governmental agencies to enter
the single window. In connection to this, develop
a database of documents issued for foreign trade
operations.
3.1.4 Establish an integrated multi-modal connectiv- 2 01 / 04 / 2018 31 / 12 / 2022 • Multi-modal plan Ministry of Megapolis Ministry of National 500,000 Logistics:
ity network through attracting investment ( PPPs ) to developed and Western Develop- Policies and Economic 3.2.1
increase a rail network between ports, airports and • Investment profiles ment Affairs ; Ministry of
commercial hub zones and facilitate fast transfer of prepared and one Transport and Civil Avi-
sea / air cargo. roadshow organized in ation ; Ministry of Ports
See Logistics strategy for more details a targeted country and Shipping ; Ministry
of Foreign Affairs
Strategic Operational Activity Priority Start date End date Targets Leading implementing Supporting Indicative Link with
objectives objectives partner implementing partners costs ( USD ) sector
and TSFs
strategies
3 : To become 3.2 : Diversify 3.2.1 Create the right ecosystem to attract more 1 01 / 04 / 2018 31 / 12 / 2019 Current regulations are Ministry of Finance Ministry of National Logistics:
an efficient logistics investment into logistics ( regional or subregional under MoPS. Gazettes, Policies and Economic 1.1.9
trade and services and headquarters and operational hubs of multinational regulations, and guide- Affairs ; Ministry of De-
logistics hub expand logistics corporations to locate in Sri Lanka ). Equity, tax and lines issued by the Mer- velopment Strategies
to facilitate operations other constraints should be removed to encourage chant Shipping Division, and International Trade ;
exports more capital inflows to Sri Lanka. BOI and CBSL should be Ministry of Transport
See Logistics strategy for more details amended and Civil Aviation ;
Ministry of Ports and
Shipping ; Board of In-
vestment ( BOI )
3.2.2 Build up Commercial Hub activities by updat- 1 01 / 01 / 2018 31 / 12 / 2018 • Finance Act, No. 12 • Department of Fiscal Ministry of Develop- Logistics:
ing the Finance Act 12 / 2012-2013 to facilitate es- of 2013 and Finance Policy MoF ment Strategies and In- 1.1.6, 1.1.7
tablishment and operations, maintaining tax structure Act – Commercial Hub ternational Trade ; Board
relevant to commercial hub operators at 0 % as origi- Regulation No. 1 of of Investment ( BOI ) ; Ex-
nally established and intended, and ensure a level 2013 amended port Development Board
playing field for new entrants in comparison to other • Zero per cent interest
competing nations. rate for commercial
See Logistics strategy for more details hub activities kept
3.2.3 Establish and promote private zones under the 1 01 / 04 / 2018 31 / 12 / 2020 • Zones for ‘plug and Ministry of Develop- Ministry of National 30,000,000 Logistics:
BOI regulations in order to create logistics and ware- play’ logistics and ment Strategies and Policies and Economic 2.2.4
housing ‘plug and play’ facilities. warehousing operations International Trade Affairs ; Ministry of Fi-
See Logistics strategy for more details allocated nance ; Board of Invest-
• Investment promotion ment ( BOI )
activities carried out
3.3 : Increase 3.3.1 Increase logistics cargo handling capacities 1 01 / 04 / 2018 30 / 06 / 2019 • Decision about Ministry of Ports and Ministry of Industry and 100,000 Logistics:
shipping in the Port of Colombo and the Bandaranaike Inter- allocation of Colombo Shipping Commerce ; Ministry 3.2.2,
capacities to national Airport ( BIA ) by expediting all port-related East Terminal contract of Transport and Civil 1.1.15
take advantage developments, particularly the completion of the taken Aviation ; Ministry of
of regional trade East Terminal and legislative amendments to expand • Amendments to Acts Megapolis and Western
flows Airports’ cargo and passenger handling services Development
through private investments / public-private partner-

[ The National Plan of Action 2018–2022 ]


ships ( PPPs ) .
See Logistics strategy for more details
3.3.2 Diversify shipping beyond containerized cargo 2 01 / 04 / 2019 31 / 12 / 2022 • Feasibility studies Ministry of Ports and Ministry of National 150,000 Logistics:
and related ancillary services to increase the activity completed Shipping Policies and Economic 3.2.4
level of non-containerized cargo in ports of Sri Lanka. • Blueprint incorporated Affairs ; Ministry of
The overall programme should work towards increas- through the national Finance
ing all types of ships calling at Sri Lankan ports. ports and shipping
See Logistics strategy for more details policy
• Call for expression of
interest announced
53
54

STRATEGIC OBJECTIVE 4 : TO DRIVE EXPORT DIVERSIFICATION THROUGH INNOVATION


AND BY STRENGTHENING EMERGING EXPORT SECTORS.
Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs sector
partner ( USD ) and TSFs
strategies
4 : To drive 4.1 : Attract 4.1.1 BOI to proceed with investment 1 01/04/2018 31/12/2022 • Investment targeting Board of Investment Ministry of Development Strategies and 350,000 Boat building:
export investment targeting to attract investors not only in materials developed ( BOI ) International Trade ; Ministry of Foreign 2.1.1, 1.3.2,
diversification into promising established but also in NES focus sectors. every year, as per Affairs ; Export Development Board ; 2.1.2 ; IT-BPM:
through new sectors to Develop an annual investment targeting new trends identified Sri Lanka Tourism Development Author- 1.2.1 ; Electrical
innovation spur economic plan in line with the guidance of relevant • Five investors ity ; Exporters Association of Sri Lanka ; and electronic
and the diversification advisory committees. This included the de- reached per year per Sri Lanka Food Processors Association ; components:
strengthening velopment a support mechanism, such as sector/TSFs Spice Council; SLASSCOM ; The Ceylon 1.2.1, 2.3.2 ;
of emerging an investment planning unit, to bring in for- National Chamber of Industries; Ceylon Logistics:
sectors. eign joint ventures with Sri Lankan export- Chamber of Commerce ( CCC ) ; Na- 3.2.3, 3.2.5 ;
oriented companies and develop feasibility tional Chamber of Exporters of Sri Lanka Spices and
studies in this regard. ( NCE ); Federation of Chambers of concentrates:
See individual sector and TSF strategies for Commerce in Sri Lanka ( FCCISL ) ; Boat 3.1.1
more details Building Technology Improvement In-
stitute ( BTI ); Department of Commerce;
Sri Lanka Electronics Manufacturers and
Exporters Association
4.2 : Proactively 4.2.1 Develop a skills-building programme 2 01/04/2018 31/12/2022 Skills-building pro- Ministry of Skills Exporters Association of Sri Lanka ; Cey- 1,000,000 Processed
improve to address workforce shortages in all NES gramme developed Development and Vo- lon Chamber of Commerce ( CCC ) ; Na- foods and bev-
national skills sectors, including introducing NES sectors’ for all NES sectors, cational Training tional Chamber of Exporters of Sri Lanka erages: 3.4.1,
development for requirements in curriculum of technical, including develop- ( NCE ); Federation of Chambers of Com- 3.4.2 ; Electrical
emerging export vocational and higher education institu- ment of new curricu- merce in Sri Lanka ( FCCISL ) and electronic
sectors tions, and updating teaching faculties’ lums and professors’ components:
knowledge about NES sectors’ needs. training 4.1.2, 4.1.3 ;
See individual sectors and TSF strategies IT-BPM: 3.2.1,
for more details 3.2.6
4.2.2 Improve interaction between industry 2 01/04/2018 31/12/2022 • Dialogue and Ministry of Higher Exporters Association of Sri Lanka ; Cey- 100,000 Boat building:
and academic and research institutions in exchange Education and High- lon Chamber of Commerce ( CCC ) ; Na- 2.2.1 ; Electrical
priority export sectors to increase the reac- mechanisms ways tional Chamber of Exporters of Sri Lanka and electronic

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


tivity and adaptation of appropriate research established in ( NCE ); Federation of Chambers of Com- components:
institutions to private sector needs. priority export merce in Sri Lanka ( FCCISL ) 4.2.1 ; IT-BPM:
See individual sectors and TSF strategies sectors 3.2.3
for more details
4.2.3 Conduct an awareness-raising cam- 2 01/04/2018 31/12/2022 • One annual Ministry of Higher Exporters Association of Sri Lanka ; Cey- 50,000 Wellness tour-
paign in schools, technical and vocational awareness- Education and High- lon Chamber of Commerce ( CCC ) ; Na- ism: 3.3.1 ;
training institutions and universities about raising campaign ways tional Chamber of Exporters of Sri Lanka Boat building:
employment opportunities and career op- conducted for each ( NCE ); Federation of Chambers of Com- 2.2.2 ; Electrical
tions in emerging export sectors for em- sector merce in Sri Lanka ( FCCISL ) and electronic
ployment generation. components:
See individual sectors and TSF strategies 4.1.1 ; Logis-
for more details tics: 2.1.1
Strategic Operational Activity Priority Start date End date Targets Leading Supporting implementing partners Indicative Link with
objectives objectives implementing costs sector
partner ( USD ) and TSFs
strategies
4 : To drive 4.3 : Reorient 4.3.1 Provide targeted funding for special- 1 01/04/2018 31/12/2021 Conditional funding Ministry of Develop- Ministry of Finance ; Ministry of Boat building:
export R&D and ized R&D, new product development, in- mechanism in place ment Strategies and Science,Technology and Research 10,000,000 2.3.1 ; Electrical
diversification innovation novation, testing and certification, and IP International Trade and electronic
through initiatives to protection and commercialization for NES components:
innovation support the priority sectors, as well as other export 2.2.2, 3.1.2
and the needs of NES sectors. Multiple mechanisms to be used –
strengthening sectors ranging from voucher schemes to matching
of emerging grants, enterprise innovation schemes, and
sectors. collaborative innovation schemes. These
are to be in line with the forthcoming I&E
Strategy.
See individual sectors and TSF strategies
for more details
4.3.2 Develop partnerships between 2 01/04/2018 31/12/2022 Two partnerships es- Ministry of Higher Board of Investment ( BOI ) ; Export De- 50,000 Electrical and
Sri Lankan universities and research institu- tablished per sector Education and High- velopment Board ; Exporters Associa- electronic com-
tions with international leading universities Two collaborative R&D ways tion of Sri Lanka ; Ceylon Chamber of ponents: 4.2.2 ;
to drive innovation and R&D. projects per sector Commerce ( CCC ) ; National Chamber of IT-BPM: 3.2.5
See individual sectors and TSF strategies Exporters of Sri Lanka ( NCE ); Federation
Two technology trans- of Chambers of Commerce in Sri Lanka
for more details fers per sector ( FCCISL )
4.4 : Support 4.4.1 Support the emergence of start-ups 2 01/04/2018 31/12/2022 • At least 400 SMEs Export Development Ministry of Development Strategies and Electrical and
the integration in NES priority sectors, with support given supported Board International Trade ; Ministry of Finance 10,000,000 electronic com-
of SMEs into for funding / credit guarantees, incubation • At least 100 start- ponents: 2.2.1 ;
the economy, facilities and common service centres ; and ups supported IT-BPM: 2.2.4
including in the technology advisory support services to
regions, and upgrade SMEs as well as specialized mar-
support the ket access schemes. This is aligned to the
establishment forthcoming I&E Strategy.
of start-ups See sector strategies and TSFs for more
details

[ The National Plan of Action 2018–2022 ]


55
Photo: Neil Marine
APPENDICES
58

APPENDIX 1 : LIST OF PARTICIPANTS IN THE NES PROCESS


No. Name Designation Organization
1 Mr. Daya Wahalatantiri Executive Director ACL Cables PLC
2 Mr. S.Kariharakanapathy Head Of the Department / IT Advanced Technical Institute
3 Mr. Y.Thishanthan Assistant Registrar Advanced Technical Institute
4 Eng. S. Prabhakar Representative Ministry of Development Strategies & International
Trade
5 Mr. Thiriyambaga Sharma IT Executive Agoysoft ( Pvt ) Ltd
6 Mr. T. Kiritharan Asst.Director Agriculture & Agrarian Insurance Board
7 Mr. K.V.P. Ranjith De Silva Vice Chairman Airport & Aviation Services ( Sri Lanka ) Limited
8 Mr. D.J.U.Purasinghe Senior Assistant Airport Manager Airport & Aviation Services ( Sri Lanka ) Limited
9 Mr. Wasantha Kumara Jayasena Chief Executive Officer Ampara District Chamber of Commerce Industry and
Agriculture
10 Mr. Kingsley Abeywickrama Managing Director APL Lanka ( Pvt ) Ltd
11 Mr. Ishan Kannangara Director- Marketing Apps Technologies ( Pvt ) Ltd
12 Mr. S.A. Welikala Senior Deputy Director Arthur C Clarke Institute for Modern Technologies
( Industrialization ) [ACCIMT]
13 Ms. Thusitha Molligode Senior Private Sector Development Asian Development Bank ( ADB )
Officer ( PPP Focal Point )
14 Ms. Angela Croslin Project Analyst Asian Development Bank ( ADB )
15 Mr. D. Thudewattage Head International Marketing & TQM Associated Battery Manufacturers ( Ceylon ) Ltd
16 Mr. Nimal Ameresekere Chairman Association of Container Transporters ( ACT )
17 Mr. Aruna Fernando Secretary General Association of Professional Bankers Sri Lanka
18 Dr. R.L. Ranasinghe Registrar Ayurvedic Medical Council
19 Mr. Danister L. Perera Former Registrar-Medical Council Ayurvedic Medical Council
20 Mr. Pierre Pringiers CEO BAFF Polymech ( Pvt ) Ltd
21 Mr.K.M.S.K.Weerawardana General Manager BAFF Polymech ( Pvt ) Ltd
22 Mr. Kaushall Rajapaksa Director BAFF Polymech ( Pvt ) Ltd
23 Mr. Gamini Rajapakse Manufacturing / Health and Safety Balfour Beatty Engineering Services Ceylon ( Pvt )
Manager Limited
24 Dr. Mrs. Swarna Kaluthotage Director Bandaranayeka Memorial Ayurvedha Research
Institute
25 Dr. D.H. Thennakoon Medical Officer Bandaranayeka Memorial Ayurvedha Research
Institute
26 Ms. A.D.S. Indrani Assistant General Manager-Trade Bank of Ceylon
Services
27 Ms. Geetha Karandawala Director Barberyn Ayurveda Resort
28 Mr. Buwanake Kulatilleke Owner’s Representative Barberyn Beach Ayurveda Resort
29 Mr. Udaya De Silva DGM -Business Development Bartleet Electronics ( Pvt ) Limited
30 Mr. M.H.M. Naleem Vice President Batticaloa District Chamber of Commerce Industry
and Agriculture
31 Mr. Rezvan Rasheed Managing Director BAZ World
32 Mr. Dilantha De Silva Chief Operating Officer Bio Extracts Pvt Ltd
33 Mr.A.G. Abubucker Head of International Sales Bio Extracts Pvt Ltd
34 Dr. Sarath Ranaweera Chairman Bio Foods ( Pvt ) Ltd
35 Mr. Nihal Rathnayake Cooperate Management Consultatnt Bio Foods ( Pvt ) Ltd
36 Ms. Asoka Malkanthi Jayakody Director ( Research & Policy Advocacy ) Board of Investment
37 Mr W. U. K. M. A. Wijayakulathilaka Director - ( Investment Appraisal ) - Board of Investment ( BOI )
Manufacturing

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


59

No. Name Designation Organization


38 Mr. M.J.K. Mohottala Director ( Kandy Export Processing Board of Investment - Kundasale
Zone )
39 Ms. Nilupul De Silva Director - Promotion Board of Investment ( BOI )
40 Major G. Dahanayaka Director Board of Investment -Koggala
41 Mr N. N. Kumaratunga Director - ( Investment Appraisal ) Board of Investment ( BOI ), responsible for EPZs and
- Services & Utilities Sector Commercial hubs ( Commercial hub section )
42 Mr. Jayamenon Senior Deputy Director Board of investment - Jaffna
43 Mr. Ananda K. Rajakaruna Senior Deputy Director Board of Investment ( BOI )
44 Ms. Renuka Dasanayake Deputy Director Board of Investment ( BOI )
( Investment Appraisal )
45 Mr. D.M.N. Dissanayake Deputy Director- Investment Appraisal Board of Investment ( BOI )
46 Mr. A S Subasinghe Assistant Director Board of Investment ( BOI )
47 Ms. Lakmali Withange Assistant Director- Investment Board of Investment ( BOI )
48 Mr. Sudath Jayasekera Assistant Director Board of Investment ( BOI )
49 Mr. W S Alwis Assitant Director Board of Investment ( BOI )
50 Mr. P.W. Senevirathna Asst.Director Board of Investment -Koggala
51 Mr. Viran Fernando Assistant Director BOI
52 Mr. Anuruddha Perera Project Officer- Investment Appraisal Board of Investment ( BOI )
53 Ms. Jeewani Sewwandi Research Officer Board of Investment ( BOI )
Liyanapathirana
54 Ms. K. Ranatunga Admin.Officer Board of Investment -Koggala
55 Mr. H M Jayasundara   Board of Investment - Kundasale
56 Mr. Gamini Herath Managing Director Boat Building Technology Improvement Institute ( BTI )
57 Mr. Priyantha Weeratunga Course Director Boat Building Technology Improvement Institute ( BTI )
Director Paramount Rectagg ( Pvt ) Ltd
58 Dr. R.A.U.C. Ranasinghe Chairman C.R.Exports ( Pvt. ) Ltd.
59 Mr. Keerthi Bandara CFO / Executive Director Camso Loadstar ( Pvt ) Ltd
SLAMERP
60 Mrs. W A Dilrukshini Additional Director Central Bank
61 Mr. M.S. Hadunge Senior Asst.Director Central Bank
62 Mr. M.A.C. Najeep Director ( Northern ) Central Environmental Authority
63 Mr. S. Sayakkara   Central Province Women’s Chamber of Small
Industries and Commerce
64 Mrs. Shirley Jayawardane Chairperson Central Province Women’s Chamber of Small
Industries and Commerce
65 Ms. M. Ariyarathne   Central Province Women’s Chamber of Small
Industries and Commerce
66 Mr. Lalantha Fernando Group Director Ceyline Eng. Services ( Pvt ) Ltd
67 Ms. Sheamalee Wickramasingha Group Managing Director Ceylon Biscuits Ltd.
68 Mr. Nadeeja Karunathilaka General Manager- International Market Ceylon Biscuits Ltd.
Development
69 Ms. Lilakshini de Mel Senior Assistant Secretary General Ceylon Chamber of Commerce
70 Mr. Shiran Fernando Chief Economist Ceylon Chamber of Commerce
71 Ms. Jayani Ratnayake Economist Ceylon Chamber of Commerce
72 Ms. Manori Dissanayaka Assistant Secretary General Ceylon Chamber of Commerce
73 Mr. Dinesh De Silva Chairman - Import Section Ceylon Chamber of Commerce
74 Mr. Buddhika Abayakoon Head of International Marketing Ceylon Cold Stores PLC
Consumer Food Sector
75 Mr. Dammika Kapukotuwa Director Ceylon CyberCom ( Pvt ) Ltd
76 Mr. Kapila Fernando   Ceylon Electricity Board

[ Appendices ]
60

No. Name Designation Organization


77 Mr. Ronald   Ceylon Electricity Board
78 Mr. S.P.A. Dahanayaka Habour Manager Ceylon Fishery Harbour Cooperation
79 Mr. P. Hettiarachchi Habour Manager Ceylon Fishery Harbour Cooperation
80 Mr. D.N. Dissanayaka Habour Manager Ceylon Fishery Harbour Cooperation
81 Mr. Nuwan Jayasinghe Manager - Operations Ceylon Fishery Harbours Corporation
82 Ms. Chitra Jayasinghe Deputy General Manager Ceylon Shipping Corporation Ltd
83 Mrs. Yamuna Wettasinghe Assistant General Manager( Business Ceylon Shipping Corporation Ltd
Development & Marketing )
84 Mr. S.M. Jayaratne Design Engineer Cey-Nor Foundation Ltd.
85 Mr. Ashoka Abeywickrama Chief Executive Officer Chamber of Commerce & Industry of Central Province
86 Mr. T. Jurison Jenaraj CEO Chamber of Commerce & Industries of Yalpanam
87 Mr. H.M. Sudath Wickramathissa CEO Chamber of Provincial Entrepreneurs ( COPE )
88 Mr. Nimalan Karthikyen Strategic Advisor Chief Minister Office -Nothern Province
89 Ms. I.V.N. Preethika Kumudinie Deputy Chief Secretary ( Planning ) / SP Chief Secretary’s Office - Galle
90 Mrs. M.S. Darmasena   Chief Secretary’s Office - Kandy
91 Mr. K.G.S. Nishshanka D .C.S Planning Chief Secretary’s Office - Kandy
92 Mr. Pardeep Rajapaksha Assistant Director Chief Secretary’s Office - Kandy
93 Mr. Sarada de Silva Chairman Cinnamon Training Academy
94 Prof. Jayasiri Lankage Managing Director Cinnamon Training Academy
95 Mr. Ananda Kularathna Managing Director Citro Essencial Oil ( Pvt ) Ltd.
96 Mr. Lahiru Samaranayeka F & B Manager Club Palm Bay Hotel
97 Mr. Lalith Kumarasinghe   Club Palm Bay Hotel
98 Mr. Sampath Samarawickrama Director- Market Development & Coconut Development Authority
Research
99 Mrs. Wasula Herath Assistant Director - Marketing Coconut Development Authority
Development & Research
100 Dr. I.M.S.K. Idirisinghe Head- Agriculture Economics Division Coconut Research Institute.

101 Mr. S. Shanthakumar Additional Director College of Technology Jaffna


102 Mr. Lal Hettiarachchi General Manager( Ship Building ) Colombo Dockyard PLC ( CDPLC )
103 Mr. D.L. Darshana Chandrasekara Head of Marketing- Ship Repairs Colombo Dockyard PLC ( CDPLC )
104 Mr. W.M.M.A. Weerasinghe Engineer-Estimating & Invoicing Colombo Dockyard PLC ( CDPLC )
105 Dr. E. K. D. Lalith Edirisinghe Associate Dean Colombo International Nautical & Engineering College
( CINEC ) -Faculty Of Management, Huminities &
Social Science
106 Mr. Anslem Perera Chaiman Colombo Tea Traders’ Association
107 Ms. Chandrika Thilakarathne Director - Consumer Affairs & Consumer Affairs Authority
Information
108 Mr. Dharmasiri Alahakoon Chairman / Joint Managing Director Country Style Foods ( Pvt. ) Ltd
109 Mr. Sarath W. Alahakoon Chairman / Joint Managing Director Country Style Foods ( Pvt. ) Ltd
110 Dr. Dan Malika Gunasekera Legal Counsel / Legal Consultant Danmar
Former Executive Director Ceylon Shipping Corporation
111 Mr. H.R.P. Fernando Deputy Director Department of Agriculture
112 Dr. P.V. Sriyalatha Chief Animal Quarantine Officer Department of Animal Production & Health
113 Dr. U.S.Gunarathna Animal Qurantine Officer Department of Animal Production & Health
114 Dr. J. Malathy Animal Qurantine Officer Department of Animal Production & Health
115 Dr. I.D.V.L. Dharmawardhana Animal Quarantine Officer Department of Animal Production & Health
116 Dr. Parakrama Wijayanaga Doctor in Ayurveda Deparment of Ayurveda
117 Mr. P.M.P.Anura Kumara Additional DG Department of Census and Statistics Sri Lanka

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


61

No. Name Designation Organization


118 Mr. D.M.N. Bandara Senior Statistician Department of Census and Statistics Sri Lanka
119 Ms. Ishanthi Kulathilake Senior Statistician Department of Census and Statistics Sri Lanka
120 Ms. Chamini Wijayapala Statistician Department of Census and Statistics Sri Lanka
121 Ms. Gothami Silva Director of Commerce Deparment of Commerce
122 Mr. H.M.B. Herath Director of Commerce Department of Commerce
123 Mr. G.L Gnanatheva Deputy Director Department of Commerce
124 Mr. D.M. Rathnayake Deputy Director Department of Commerce
125 Mr. Alexi Gunasekera Deputy Director Deparment of Commerce
126 Ms.Kishani Wickramasinghe Assistant Director Department of Commerce
127 Mrs. S.Shamala Asst. Commissioner of Co-Operative Department of Cooperative Development
Development
128 Mr. M. Sivakumaran Samurdhi Manager Department of Divi neguma Development
129 Ms. A.P.P. Disna Director - Regulation Department of Export Agriculture
130 Mr. I.V.A.D.C. Induruwa Assistant Director Department of Export Agriculture
131 Mr.K.T.N.Nambukara Head Quarters Extension Officer Department of Export Agriculture
132 Mr. M C L Fernando Director General Department of Fisheries & Aquatic Resources
133 Ms.Sepalika Wickramasinghe Deputy Director / Quality Control Department of Fisheries & Aquatic Resources
134 Mr. L.D.A. Udayakantha Marine Engineer Assistant Department of Fisheries and Aquatic Resources
( DFAR )
135 Mr. M K W S Kumara Assistant Director Department of Fisheries & Aquatic Resources
136 Mr. J.Suthakaran Assistant Director Department of Fisheries and Aquatic Resources
( DFAR )
137 Mrs. P. Beneraj District Officer Department of Industries, Northern Province
138 Ms. Anjalika Gunasekara Director Department of National Planning
139 Ms. Chandrika Senanayake Additional Director Department of Project Management & Monitoring
Ministry of National Policies and Economic Affairs
140 Ms. L.K.S. Dharmakeerthi Registrar of the Company Department of Registrar of Companies
141 Mr. H.M.M.U.B. Herath Provincial Director Department of Trade, Commerce & Tourism – Central
Province
142 Ms. Dilanthi Piyadigama Research & Development Assistant Dept. of Export Agriculture, Galle
143 Mr. G. S. Fernando Managing Director Dhanusha Marine Lanka Export ( Danusha Group of
Companies )
144 Mr. Sachitra Fernando Manager / Business Development Dhanusha Marine Lanka Export
145 Ms. Gayathri Amarasinghe Manager Sales & Operation Dhanusha Marine Lanka Export
146 Mr. Dimithri Perera Country Manager DHL Keells ( Pvt ) Ltd
147 Mrs. M. Ketharagowry District Coordinator ( WDO ) District Child / Women Devlopement Unit
148 Mr. Sirankan Assistant Director of Planning District Secretariat, Chudikkuli
149 Mr. C.A. Suneth Lochana Add.GA District Secretariat, Hambantota
150 Mr. N Gawrithassan Assistant Director Planning District Secretariat, Kilinochchi
151 Mr. K.W. Munasinarachchi Assistant Director ( Planning ) District Secretariat, Matara
152 Mr.T.Thireshkumar Additional District Secretary District Secretariat, Vavuniya
153 Mr. Gamini Bandara Proprietor Dumbara Lanka Spice
154 Mr. Chaminda Lankagama Market Development Manager Electro Metal Pressings ( Pvt ) Ltd
155 Mr. Suresh Ellawala Director Ellawala Horticulture ( Pvt ) Ltd
156 Mr. Asela Jayarathna Business Development Consultant EPIC Lanka ( Pvt ) LTD
157 Mr. Siri J. Samarakkodi Managing Director Esjay Electronics ( Pvt ) Ltd
158 Mr. Srinath Fernando General Manager European Chamber of Commerce of Sri Lanka
( ECCSL )

[ Appendices ]
62

No. Name Designation Organization


159 Mr. Dilshan   European Chamber of Commerce of Sri Lanka
( ECCSL )
160 Mr. Suntharalingam Anpalagan Director Ever Tree Fruit Products ( Pvt ) Ltd
161 Mr. Theepan Accountant Ever Tree Fruit Products ( Pvt ) Ltd
162 Mr. Harin de Silva Chairman Exporters Association of Sri Lanka ( EASL )
163 Mr. Sharanyan Sharma Managing Director Extreme Seo Internet Solutions
164 Mr. W.T.G. Samantha Senior Lecturer / Head-DIS Faculty of Engineer University of Ruhuna
165 Mr. Ajith D Perera Secretary General Federation of Chambers of Commerce in Sri Lanka
( FCCISL )
166 Dr. Kithsiri Manchanayakke Chairman Federation of IT Industry Sri Lanka ( FITIS )
167 Mr. A.I. Nagahawatta Operations Manager Ferrow Chemicals ( Pvt ) Ltd
168 Mr. E.R.C. Moraes Senior Advisor Finlays Colombo Limited
169 Ms. Deepika Hettiarachchi Assistant Director - Agriculture Food Research Unit
Research
170 Mr. Nalin Herath   Forever Skin Natural( Pvt )Ltd
171 Mr. Melvin Samarasinghe Chairman Foundry Development Services Institute
172 Ms. Priyadarshani Halpe General Manager G D P Silva & Sons International ( Pvt ) Ltd.
173 Mr. Chanaka Kariyawasam CEO Galle Chamber of Commerce
174 Mr. Hasitha Wijesundara Advisor GIZ - SME Development Programme
175 Mr. Emilio Carcano Special Project and Stratgic Goglio
Development ( Packaging Represent )
176 Mr. S. Muththusamy Chairman Green Field Bio Plantation ( Pvt ) Ltd
177 Mr. Fazal Mushin CEO Green Field Bio Plantation ( Pvt ) Ltd
178 Mr. D. Chandana Thennakoon Assistant Manager HR & Greentel Mobile
Administration
179 Mr. Ruwan Waidyaratne Managing Director Hayleys Advantis Limited
Chairman Ceylon Association Of Shipping Agents ( CASA )
180 Mr. Samudra Rajapakshe Head - Strategic Business Hayleys Agriculture Holdings Ltd.
Development
181 Mr. Amal Rodrigo Director Hayleys Free Zone
182 Mr. Nalaka Ratnayake Manager Hayleys Group
183 Ms. P.A.J. Champika Reseach Officer Hector Kobbekaduwa Agrarian Research and Training
Institute ( HARTI )
184 Mr. Lankesha Ponnamperuma Manager Hikka Tranz By Cinnamon
185 Eng. Buddhika Marasingha Director / Mechanical Engineer Hitech Solutions ( Pvt ) Ltd
186 Ms. Nimalka Morahela Proprietor HnA Consulting & Events
187 Mr. Renuka Lasantha Senior Lecturer ICBT – Kandy
188 Mr. Suboda Perera Senior Lecturer ICBT – Kandy
189 Mr. Geeth Jayathilaka Lecturer ICBT – Kandy
190 Ms. Yamuna Perera Director - Exports Impex Corporation
191 Ms. Renuka Damayanthi Director - Exports Impex Corporation
192 Mrs. N. Nimalka Dias Past Controller General Import and Export Control Department ( IECD )
193 Ms. T.V.D.D.S. Karunarathne Controller General Import and Export Control Department ( IECD )
194 Ms. Iresha Weerasekara Controller Import Export Control Department ( IECD )
195 Mr. S.Sivakangatharan Deputy Director Industrial Development Board
196 Mr. Priyanka Rathnamalala   Industrial Development Board
197 Mr. Neelakanth Wanninayake Executive Director & CEO Industrial Service Bureau
198 Dr. P. Ranasinghe Senior Deputy Director - Herbal Industrial Technology Institute ( ITI )
Technology Section

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


63

No. Name Designation Organization


199 Dr. P.N.R.J. Amunugoda Senior Research Scientist Industrial Technology Institute ( ITI )
200 Dr. H.P.P. Sudaththa Somasiri Senior Deputy Director Industrial Technology Institute ( ITI )
201 Ms. Manori Wijemanna Senior Deputy Director / Marketing & Industrial Technology Institute ( ITI )
Business Development
202 Mr. Indika de Zoysa Director ( Projects ) Information and Communication Technology Agency
( ICTA )
203 Mr. Sachindra Samararatne Project Manager Information and Communication Technology Agency
( ICTA )
204 Mr. Nilan Thimbiripola Project Manager Information and Communication Technology Agency
( ICTA )
205 Dr. Swarna Hapuarachchi Director Institute of Indigenous Medicine
206 Dr. A.H. Mohammed Mawjood Senior Lecturer Institute of Indigenous Medicine
207 Dr. Janaka Wijayasiri Research Fellow Institute of Policy Studies ( IPS )
208 Mr. Nanda B. Kohona Director International Commodity Traders ( Pvt ) Ltd
209 Mr.Victor Antonypillai Country Officer - Sri Lanka and International Finance Corporation ( IFC )
Maldives
210 Ms. Lakmini Wijesundera Chief Executive Officer IronOne Technologies Pvt Ltd
211 Dr. Dayaratna Silva National Project Coordinator ITC
212 Mr. V. Sritharan AO Jaffna Chamber Of Commerce
213 Mr. T. Loganathan Director Jaffna College Institute of Technology
214 Dr. Dinesh Edirisinghe Head of Ayurveda Jetwing Hotel
215 Mr.Ananda de Silva Business Development Manager Jetwing Lighthouse
216 Mr. Tuli Cooray Secretary General Joint Apparel Association Forum ( JAAF )
217 Mr. Sean Van Dort Director - Logistics & Digital Service MAS Capital
Intergration Joint Apparel Association Forum ( JAAF ) - Logistics
Committee
218 Mr. S.Shnmugalingam Factory Manager Juchufy Fruit Based Industry
219 Mr. Lakshan Algama Perera Director-Finance and Business K.I.K.Lanka ( Pvt ) Ltd.
Development
220 Mr. Sanka Wijeratne Director-Finance and Planning K.I.K.Lanka ( Pvt ) Ltd.
221 Mr. Sujeeva Godage General Manager - Capital Kahawatta Plantation PLC
Development & Sustainability
222 Mr. Janaka Gunawardena   Kahawatta Plantation PLC
223 Mr. M.M. Niyaz   Kandy Muslim Traders’ Association
224 Mr. Dinesh Wijesiri   Kaneel Cinnamon & Spice Export - Kandy
225 Mr. Balendran General Manager Karachchi South MPCS
226 Mr. S.Pirashanth Production Assistant Manager Katpagacholai
227 Mr. John Fernando Assistant Sales Manager - Exports Kelani Cables PLC
228 Ms. Ishara Jayasinghe Product Development Executive Kevilton Electrical Products ( Pvt ) Ltd
229 Mr. K.L. Karunarathne Managing Director L.B. Spicies Trading ( Pvt ) Ltd
230 Mr. W.G. Gunasena Chairman Lakrandi Cinnamon Oil
231 Mr. Nilhan Ekanayake Manager Administration / Export Lanka Canneries ( Pvt ) Ltd.
232 Mr. Asiri Silva Manager Export Administration Lanka Canneries ( Pvt ) Ltd.
233 Mr. Suresh D. De Mel Managing director Lanka Fishing Flies ( Pvt ) ltd
Director Hambantota District Chamber of Commerce
234 Ms. Kemalochana Velauthan   Lanka Fruit & Vegetable Producers, Processors and
Exporters Association
235 Mr. Rohan Pallewatta Managing Director / CEO Lanka Harness Co. ( Pvt ) Ltd.
236 Mr. Pubudu Ediriweera Head of Operations & Compliance Lanka Harness Co. ( Pvt ) Ltd.

[ Appendices ]
64

No. Name Designation Organization


237 Mr. Shayne Madappuli Business Development Manager Lanka Hiqu ( Pvt. ) Ltd
T&G lanka ( Pvt. ) Ltd
238 Ms. Sachithra Pelendahewa Project Engineer Lanka Hiqu ( Pvt. ) Ltd
T&G lanka ( Pvt. ) Ltd
239 Mr. Prithee Perera Personal Assistant to M.D Lanka Hiqu ( Pvt. ) Ltd
T&G lanka ( Pvt. ) Ltd
240 Dr. Prasad Medawatte CEO Lanka Hospitals Corporation PLC
241 Ms. Tehania Samarasekara Manager- International Patient Care Lanka Hospitals Corporation PLC
Services
242 Mr. D.K.R. Dharmapala CEO Lanka Sportreizen
243 Mr. Jagath Kumara Senior Surveyor and In charge of Lloyd’s Register Marine
Sri Lanka Operations
244 Mr. E.W.A.S. Erathna Exports and Complaiance Officer Maliban Biscuit Manufactories ( Pvt ) Ltd
245 Mr. Christopher Fernando Executive Director Malwatte Valley Plantation PLC
246 Mr. Duminda Meddogoda   Mas Holdings ( Pvt ) Ltd
247 Mr. R.G.S.A. Perera Deputy Director Measurement Units, Standards and Services
Department ( MUSSD )
248 Mr. S.D.I. Dias Assistant Director Measurement Units, Standards and Services
Department ( MUSSD )
249 Mr. Alanka Ruwanpathirana Assistant Director Measurement Units, Standards and Services
Department ( MUSSD )
250 Mr. Chamindika Jude Samaraweera Managing Director Medical Tourism ( Pvt ) Ltd
251 Ms. N. Jayasinghe Legal Officer Merchant Shipping Secretariate
252 Mr. P V T P Chandana Gov. Ship Surveyor Merchant Shipping Secretariate
253 Capt. Upul Peiris Government Ship Surveyor Merchant Shipping Secretariate
254 Mr. Jeewana Waidyarathne General Manager Metatechno Lanka Company ( Pvt ) Ltd
255 Mr. Pubudu Basnayake OEM Director - New Market for South Microsoft
East Asia
256 Mr. S T Abouthali AD / FCAU Ministry of Health, Nutrition and Indigenous Medicine
257 Mr. B.Wijayarathna Secretary Ministry of Agriculture
258 Mr. K. Hettiarachchi Add. Secretary Ministry of Agriculture
259 Mr. T.H. Amarasinghe Director- Agriculture Technology Ministry of Agriculture
260 Mr. E.H.G. Prasanga Asst.Secretary Ministry of Agriculture & Trade ( SP )
261 Mr. M. Bakerathan Development Officer Ministry of Agriculture, Northernprovince
262 Mr. W.A.D.S. Gunasinghe Additional Secretary Ministry of Development Strategies & International
Trade ( MODSIT )
263 Dr. Ravi Ratnayake Member- National Trade Negotiation Ministry of Development Strategies and International
Committee Trade ( MODSIT )
264 Ms. Gamani Liyanarachchi Director Ministry of Development Strategies & International
Trade ( MODSIT )
265 Ms. Amila Nawaratne Assistant Director Ministry of Development Strategies & International
Trade ( MODSIT )
266 Mr. Ryan Jehan Rockwood Representative Ministry of Development Strategies & International
Trade ( MODSIT )
267 Mr. Deyanath Kulatunga   Ministry of Development Strategies & International
Trade ( MODSIT )
268 Ms. Krishani K. Koralege   Ministry of Education
269 Mr. Jagath Murage Director Department of Trade Investment Policy -
Ministry of Finance
270 Mrs.U.P.I.G.Uggaldeniya Assistant Director( Planning ) Ministry of Fisheries & Aquatic Recourses
Development

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


65

No. Name Designation Organization


271 Ms. Prasadini Bominiyaarachchi Asst.Secretary Ministry of Fisheries & Aquatic Recourses
Development ( SP )
272 Mr. Kapila Fonseka Director Ministry of Foreign Affairs
Economic Affairs & Trade
273 Ms. Subhashini Silva Assistant Director Ministry of Foreign Affairs
274 Mr. U. Ahamed Razee Assistant Director Ministry of Foreign Affairs
275 Dr. Ananda Jayalal Director Ministry of Health, Nutrition & Indegenous Medicine
Food Control Unit
276 Dr. T. Weerarathna D / D Technical Ministry of Health, Nutrition and Indigenous Medicine.
277 Dr. K. Ariyarathne Director-Private Health sector Ministry of Health, Nutrition and Indigenous Medicine.
Development
278 Dr. E. Rajapakshe   Ministry of Health, Nutrition and Indigenous Medicine.
279 Mr. D.D. Mathararachchi Senior Programme Director Ministry of Higher Education and Highways
280 Ms. Mangala Gunarathne Director Ministry of Higher Education and Highways
281 Ms. R .Thilageshwary Asst Secretary Ministry of Industries - Central Province
282 Mr. Rohan Jayatilaka Director Ministry of Industry & Commerce
283 Mr. R.S.K. Doolwalage Director ( Commerce ) Ministry of Industry & Commerce
284 Mr. Anil Sirimanne Assistant Director Ministry of Industry & Commerce
285 Mr. H.M.S. Kumara   Ministry of Industries - Central Province
286 Rear Admiral. D E C Jayakody Project Director - Maritime Cities Ministry of Mega polis & Western Development
Development Project
287 Mr. U G Ratnasiri Additional Secretary - Economic Affairs Ministry of National Policies & Economic Affairs
288 Mr. Dhammika Ranatunga Director - Development Ministry of Plantation Industries
289 Mr. N.S. Wanasinghe Director Ministry of Plantation Industries
290 Ms. H.R. Sirinama Director Ministry of Ports and Shipping
291 Mrs. B.M.R.P. Bandaranayake Assistant Director Planning Ministry of Ports and Shipping
292 Dr. Kumudini Gunasekara Agri Business Specialist Ministry of Primary Industries
293 Mr. Ransilu Watawala Deputy Director Ministry of Primary Industries
294 Mr. Sapumal Kapukotuwa Value Chain Specialist Ministry of Primary industries
ASMP -World Bank
295 Mr. Waruna Dhanapala Senior Assistant Secretary ( ICT for Ministry of Telecommunication & Digital Infrastructure
Dev )
296 Mrs. Uma Nirajanan Director ( Planning ) Ministry of Tourism Development & Christian Religious
Affairs
297 Mr. J.M. Thilakarathna Banda Additional Secretary Ministry of Transport and Civil Aviation
298 Mr. Sanjeeva Abeygoonewardena Director / CEO Mountain Hawk Express ( Pvt ) Ltd ( FedEx Express )
Group Managemnet Committee Hayleys Advantis Ltd.
299 Dr. ( Mrs ) Diana Gunawardena Chairperson Mystical Rose Health & Leisure Care ( Pvt ) Ltd
300 Mr. Dinesh Gunawardena Director Mystical Rose Health & Leisure Care ( Pvt ) Ltd
301 Mr. R.Thirumurugan Inspection Officer National Apprentice and Industrial Training Authority
( NAITA )
302 Mr. H.M.U.K.P.B. Herath Director ( Freshwater Aquaculture National Aquaculture Development Authority
Development ) ( NAQDA )
303 Mr. Ramal Jasinghe President National Chamber of Exporters
304 Mr. Shiham Marikkar Secretary General / CEO National Chamber of Exporters
305 Mr. L.S.G. Thilakaratne Consultant National Chamber of Exporters of Sri Lanka( NCE )
306 Ms. Linda Motha Senior Executive -Technical Service National Chamber of Exporters
307 Mr. Sachithra Weerasinghe Manager National Chamber of Exporters
308 Ms. Keshani Witanage   National Chamber of Exporters
309 Mr. G.G. Jayasinghe Deputy Director ( R ) National Cinnamon Research & Training Centre

[ Appendices ]
66

No. Name Designation Organization


310 Mr. Lakshman Wijewardena Director National Economic and Development Authority
( NEDA )
311 Mrs. D.G. Ayoma .P. Dias Assistant Director - Export Services National Gem & Jewellery Authority
and Export Marketing
312 Mrs. I.K. Warshamana Deputy Director National Plant Quarantine Service
313 Ms. W.Jayani Nimanthika Assistant Director National Plant Quarantine Service
314 Mr. J. G. Shantha Siri Senior Scientific Officer National Science Foundation
315 Mrs.Vijitha Weerasinghe Director / Planning National Transport Commission
316 Ms. Supuli Sililari Managing Director Nature Healing Ayurveda Products
317 Mr. Kapila Sumanapala Director Administration Neil Fernando and Company ( Pvt ) Ltd
318 Mrs. Dawn. S. Austin Managing Director Nidro Supply ( Pvt ) Ltd.
319 Mr. T. Thavaruban Chairman Northern Chamber of Information Technology
320 Mr. Y. Sharmmhik  Vice Chairman Northern Chamber of Information Technology
321 Mr. Jagath Chammika Managing Director NorthWest Marine ( PVT ) LTD
322 Mr. I D D Wickramasinghe Finance Manager NorthWest Marine ( PVT ) LTD
323 Mr. S. Naguleswaran Owner of the Company Nutri Food Packers
324 Ms. Shanali Samarasekara Assistant Director Ocean University / Regional Centre, Galle
325 Mr. P.U.I. Perera Director ( Training ) Ocean University of Sri Lanka
326 Mr. A. Jesudas S.D.A Ocean University,Jaffna
327 Mr. Fazil Nayeem General Manager - Operations Oceanpick ( Pvt ) Ltd
328 Mr. Irfan Thassim Managing Director Oceanpick ( Pvt ) Ltd
329 Mrs. S. Kaileswaran District Director Office of the District Director of Agriculture
330 Mr. Kushan Kodituwakku Managing Director OREL Corporation ( Pvt ) Limited
331 Mr. Dashan Rathnasinghe R&D Engineer Electronics OREL Corporation ( Pvt ) Limited
332 Mr. Duminda Perera R&D Junior Project Manager OREL Corporation ( Pvt ) Limited
333 Mr. Indika Kulatunga General Manager Innovation OREL Corporation ( Pvt ) Limited
334 Mr. Anuradha Abeyweera R&D Manager OREL Corporation ( Pvt ) Limited
335 Mr. Upendra Pieris Vice President OrelIT ( Pvt ) Limited
336 Mr. Jeevan Gnanam Director / CEO Orion City IT Park
337 Mr.Siddharthan Udhayakumaran Executive Assistant to CEO Orion City IT Park
338 Mr. Chaminda Udakumbura Deputy General Manager - Paddy Marketing Board
Administration
339 Mr. M.B. Loganathan Deputy General Manager Palmyrah Development Board
340 Mr. Sanjay Tiwari CEO & Executive Director Piramal Glass Ceylon PLC
341 Mr. Nishan Mendis Director - Consulting PricewaterhouseCoopers ( PWC )
342 Ms. Zahra Cader Senior Manager PricewaterhouseCoopers ( PWC )
343 Mr. Sajith Gunaratna Deputy General Manager Prima Group /
Ceylon Agro Industries Ltd
344 Dr. Nandaka Molagoda Director Prime Minister’s Policy Development Office
345 Mr. Jaliya Wickramasurendra Director PTC Holdings
346 Ms. Sankeetha   Punkudutivu Food Manufactures
347 Ms.Thamilini   Punkudutivu Food Manufactures
348 Ms. Elavally   Punkudutivu Food Manufactures
349 Mr. Jeevantha Fernando Director Ranil Marine
350 Mr. Tyrone Mendis   Ranil Marine
351 Mr. M.W.Tiron Premajith Export Manager Rathna Producers Cinnamon Exports ( Pvt ) ltd
352 Mr. Canagaratnam Sabeson Head of Key Accounts Renuka Agri Foods PLC
353 Dr. S.R. Rajiyah Group Managing Director Renuka Agri Foods PLC

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


67

No. Name Designation Organization


354 Mr. Withanawasam   Rice Research & Development Institute
355 Mrs. Amitha Bentota Director-Rice Research and Rice Research and Development Institute
Development
356 Mr. J.M. Ikram   Rio Jewellery - Kandy
357 Dr. Susantha Siriwardena Deputy Director Rubber Research Board [RRI]
358 Mr. H.M.P. Bandara   Ruhunu Foods ( Pvt ) Ltd
359 Mr. D.A.H. Dharmapala Promotion Manager Ruhunu Tourism Bureau
360 Mr.J.M. Karunarathna Manager Ruweena Products
361 Mr. Suresh A. Silva Managing Director / Group Chief S A Silva & Sons Lanka ( Pvt. ) Ltd.
Executive
362 Mr. Prabath Fernando Assistant General Manager- Finance S A Silva & Sons Lanka ( Pvt. ) Ltd.
363 Ms. Pubudini Abeyesekera- Executive Coordinator S.A. Knowledge Services ( Pvt ) Ltd ( SAKS )
Anthonypillai  Website Directions
Orion City
364 Prof. Achini De Silva Lecturer Faculty of Agricultural Sciences - Sabaragamuwa
University of Sri Lanka
365 Mr. M. Nilashan Director Satron
366 Mr. A.G. Indrajith Accountant SDS Spices ( Pvt ) Ltd
367 Mr.Charitha Dewinuwan Perera   Sepra Natural ( Pvt ) Ltd
368 Ms. Ruvini Ranasinghe Manager-Business Development SGS Lanka ( Pvt ) Ltd.
369 Mr. Ushan Edirisinghe Senior Marketing Manager-Leisure Siddhalepa Ayurveda Resorts & Spas
370 Mr. Harshana Rajaratne   Siddhalepa Groups ( pvt ) Ltd
371 Mr. Palitha Ethulgama Deputy General Manager - Marketing Sierra Cables PLC
372 Mr. Haridhu Abeygoonaratne General Manager Sim Centric Technologies ( Pvt ) Ltd.
373 Ms. B. Ameera Accountant Sivanarul Products
374 Ms. S.Anitha Accountant Sivanarul Products
375 Mr. Ruwindu Peiris Chairman SLASSCOM
376 Mr. Chrishan De Mel Executive Director SLASSCOM
377 Ms. Menushika Fernandopulle Programme Manager - Tentative SLASSCOM
378 Mr. Channa Manoharan Director Operations SLASSCOM
Advisory Leader PWC
379 Mr. S.D. Premathilake General Manager Solas Marine Lanka ( Pvt ) Ltd.
380 Mr. Shehan Ramanayake Consultant ( Tourism ) Southern Development Board
381 Mr. Vernon Abeyratne Chairman Spices & Allied Products Producers’ and Traders’
Association ( SAPTA )
382 Mr. D. G. Pushpakumara Deputy Director ( Finance & Sri Lanka Accreditation Board ( SLAB )
Administration )
383 Mr. L.H.D. Bandusoma Deputy Director Sri Lanka Accreditation Board ( SLAB )
384 Ms. Chanditha Ediriweera Deputy Director Sri Lanka Accreditation Board ( SLAB )
385 Mr. Manisha H. Wickramasinghe Assistant Director ( Accreditation ) Sri Lanka Accreditation Board for Conformity
Assessment
( SLAB )
386 Mr. Janaka Munasinghe Senior Manager – Worldwide Cargo Sri Lanka Airlines Limited
Operations
387 Mr. Felix Fernando Chairman Sri Lanka Apparel Exporters Association
388 Mr. Kumar Senevirathna Reoresentative Sri Lanka Apparel Exporters Association
Penguin Sportswear ( Pvt ) Ltd( Emjay Penguin )
Manager Logistics
389 Mr. Nimal S. Perera President Sri Lanka Association for the Advancement of Quality
and Productivity ( SLAAQP )

[ Appendices ]
68

No. Name Designation Organization


390 Mr. Niroshan Periyasamy Deputy Secretary Sri Lanka Automotive Component Manufacturers
Association ( SLACMA )
391 Mr. Prema Cooray Chairman Sri Lanka Convention Bureau
392 Mr. S. Mahesan Director ( Exports ) Sri Lanka Customs
393 Mr. Sudaththa Silva Superintendent Customs Sri Lanka Customs / ASYCUDA World and Border
Alerts Management Team
394 Mr. K A K N D Dharmapala Assistant Superintendent of Customs Sri Lanka Customs
395 Mr. Palitha Gurusinghe President Sri Lanka Ecotourism Foundation
396 Mr. Dilruk Ransinghe General Manager Sri Lanka Export Credit Insurance Corporation
( SLECIC )
397 Mr. Maliek de Alwis President Sri Lanka Food Processors Association ( SLFPA )
398 Mr. Delano Dias Vice President Sri Lanka Food Processors Association ( SLFPA )
Chief Operating Officer Cargills Quality Foods Ltd.
399 Mr. Dhammika Gunasekara Past President Sri Lanka Food Processors Association ( SLFPA )
Hon Secretary The Spice Council
400 Mr. Dushmantha Karannagoda Past Chairman Sri Lanka Freight Forwarders’ Association ( SLFFA )
401 Dr. Pradeepa Samarasinghe Head OF Department Sri Lanka Institute of Information Technology ( SLIIT )
Department of IT
402 Dr. Pradeep Abeyguunawardane Senior Lecturer Sri Lanka Institute of Information Technology ( SLIIT )
Head - Department of Information
Systems Engineering
403 Mr. Suranjith Swaris Vice President, Events Sri Lanka Institute of Marketing
404 Mr. Pradeep Edward Vice President, Education Sri Lanka Institute of Marketing
405 Mr. Dehan Seneviratne Manager / Marketing consultant Sri Lanka Institute of Marketing
406 Dr. Shehan De Silva Head of Strategic Planning / Senior Sri Lanka Institute of Nanotechnology ( SLINTEC ) 
Scientist
407 Mr. Anura Alahapperuma Head / Tourism Sri Lanka Institute of Tourism & Hotel Management
Event Mgt.
408 Mr. Sarath Kumara Senior Lecturer Sri Lanka Institute of Tourism & Hotel Management
409 Mr. Jagath Pathirane Chairman Sri Lanka Logistics and Freight Forwarders
Association ( SLFFA )
410 Mr. Roshan Silva Vice Chairman Sri Lanka Logistic and Freight Forwarders Association
Managing Director ( SLFFA )
CL Synergy Pvt.Ltd
411 Commodore. D.S. Bogahawaththa Commodore Manager IP CP Sri Lanka Navy
412 Mr. H. D. A. S. Premachandra Managing Director Sri Lanka Ports Authority
413 Mr. Upali De Zoysa Director – Logistics Sri Lanka Ports Authority
414 Mr. Jayantha Perera Director- Ports Operation Sri Lanka Ports Authority
415 Mr. Suranga Walpola Manager ( Logistic ) Sri Lanka Ports Authority
416 Ms. Zavia Miskin Dy. Chief Operations Manager Sri Lanka Ports Authority
417 Mr. A.L. Mohammed Nowfer Dy.Chief Engineer Sri Lanka Ports Authority
418 Mr. Nirmal Silva   Sri Lanka Ports Authority
419 Mr. D.H.S.Wimalasiri DHM / Act.RM Sri Lanka Ports Authority - Galle
420 Mr. N.J. Chrisso De Mel Chairman Sri Lanka Shipper’s Council
421 Mr. Suren Abeysekara Vice Chairman Sri Lanka Shipper’s Council
422 Mr. Gamini Dharmawardena Director General Sri Lanka Standard Institution ( SLSI )
423 Mr L P L Chitrage Director ( Laboratory Services ) Sri Lanka Standard Institution ( SLSI )
424 Mr. M.S.S. Fernando Director ( Eng ) Sri Lanka Standard Institution ( SLSI )
425 Mrs. Samanthi Narangoda Director Sri Lanka Standard Institution ( SLSI )
426 Mrs. M.I.S. Jayasekera Director ( Standardization ) Sri Lanka Standard Institution ( SLSI )
427 Mr. T. Uthayakumar Senior Deputy Director Sri Lanka Standard Institution ( SLSI )

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


69

No. Name Designation Organization


428 Mr. L.W. Gunawardana Senior Deputy Director Sri Lanka Standard Institution ( SLSI )
429 Mr. M.K. Samaraweera Asst.Tea Commissioner Sri Lanka Tea Board
430 Mrs. Premala Srikantha Director Promotions Sri Lanka Tea Board
431 Dr. K. Ranjith W. Abeywickrama Deputy Director ( Laboratory ) Sri Lanka Tea Board
President Sri Lanka Association of Testing Laboratory
432 Mr. M.C. Sampath Perera Assistant Director Sri Lanka Tea Board
433 Mr. Nalaka Sanjeewa Market Analyst Sri Lanka Tea Board
434 Mr. Chandana Wijeratna Director-Standard & Quality Assurance Sri Lanka Tourism Development Authority ( SLTDA )
435 Ms. Rajeeka Ranathunga Assistant Director - International Sri Lanka Tourism Development Authority ( SLTDA )
Relations
436 Mr. Waruna Ettipola Assistant Director - Standards & Sri Lanka Tourism Development Authority ( SLTDA )
Quality Assurance
437 Mr. Dayasiri Fernando Assistant Director Sri Lanka Tourism Development Authority ( SLTDA )
438 Ms. Dinushka Peiris   Sri Lanka Tourism Development Authority ( SLTDA )
439 Mr. Indrajith de Silva Director - Destination and Social Sri Lanka Tourism Promotion Bureau
Responsibility
440 Mrs. Madubhani Perera Director Marketing Sri Lanka Tourism Promotion Bureau
441 Mr. Tyrone Gunawardane Manager - Cargo Sri Lankan Airlines Limited
442 Mr. Clifford Rodrigo Cargo Sales Manager Sri Lankan Airlines Limited
443 Mr. Hiran Fernando Cargo Sales Executive Sri Lankan Airlines Limited
444 Mr. Chinthaka Kulatilleke Head of HR & Administration Sri Lankan Catering
445 Mr. S.Lucia Selvakumar   St.Lucia( Pvt ) Ltd
446 Mr. T. Niroshan   Sun Coir Industry
447 Mr. Farazy Fahmy Director - Research and Development Synopsys Lanka ( Pvt ) Ltd
448 Mr. Ashique Mohamed Ali Director Talliance ( Pvt ) Ltd
449 Mr. Ranjith Abeykoon Secretary General Tea Exporters’ Association
450 Mr. M C M Farook Deputy Director Telecomunnications Regulatory Commisson
of Sri Lanka
451 Mr. T.G. Premaratne Development Officer Telecomunnications Regulatory Commisson
of Sri Lanka
452 Mr. Rohan Abeywickrama President The Association of Small and Medium Enterprises
in Tourism
( ASMET )
453 Mr. M.B. Jayarathne Vice President The Association of Small and Medium Enterprises
in Tourism
( ASMET )
454 Dr. I.B.V.L. Dharmawadhana Animal Qurantine Officer The Department of Animal Production and Health
( DAPH )
455 Ms. Laleenie P. Hulangamuwa Chief Executive Officer The Hotels Association of Sri Lanka
456 Mr. Sanath Ukwatte President The Hotels Association of Sri Lanka
Chairman / MD Mount Lavinia Hotel
457 Mr. D.A. Perera Chairman The Spice Council
Managing Director EOAS Organics ( Pvt ) Ltd
458 Mr. Jude Fernando Secretary The Spice Council
459 Mr.T P L Raj Treasurer The Spice Council
460 Mr. Merrick Gooneratne Executive Director TOS Lanka Co. ( Pvt ) Ltd.
461 Mr. D. Fernando ICT Manager TOS Lanka Co. ( Pvt ) Ltd.
462 Ms. Janitha Danthanarayana Operation Manager TOS Lanka Co. ( Pvt ) Ltd.
463 Mr. M. Thanthirimudali   Tour Guide Association
464 Ms. Rashmi Mather   Tourism Task Force
465 Mr. Chandana Hettiarachchi Secretary Tourist Drivers Association - Kandy

[ Appendices ]
70

No. Name Designation Organization


466 Mr. C. Perera Duty Secretary Tourist Drivers Association - Kandy
467 Mr. Wilhelm E. Brown President Travel Agents Association of Sri Lanka ( TAASL )
General Manager Alpha Travels & Holidays ( Pvt ) Ltd
468 Mr. Shibly Shamsudeen Director Operations Traveller Global ( Pvt ) Ltd
469 Mr. A.S. Thenuwara Managing Director Tree of Life ( Pvt ) Ltd
470 Mr. P.Vimalakrishna BDFO UNDP
471 Mr. M.Z.M. Farhad National Sector Specialist UNIDO
EU / ITC / UNIDO Project Sri  Lanka
472 Ms. Sumathy. L. Rajasingham National Quality Expert UNIDO
473 Dr. Nishantha Sampath Punchihewa Senior Lecturer & Attorney at Law University of Colombo
474 Dr. Ruvan Weerasinghe DGM Business Development University of Colombo School of Computing
475 Dr. A. Ramanan Head Of the Department( IT ) University of Jaffna
476 Prof. Velnampy Dean / Faculty of Managemant University of Jaffna
477 Mr. Ravi Dissanayake Senior Lecturer University of Kelaniya
478 Dr. Janaka Wijayanayake Senior Lecturer - Department University of Kelaniya
of Industrial Management
Faculty of Science
479 Dr. Dilani Wickramaarachchi Senior Lecturer - Department University of Kelaniya
of Industrial Management
Faculty of Science
480 Mr. Bhanu Watawana   University of Kelaniya - Faculty of Science
481 Dr. Ajith Pasqual Head / Dept. of Electronics & University of Moratuwa
Telecommunication Engineering
482 Dr. Lochandaka Ranathunga Senior Lecturer - Department of University of Moratuwa
Information Technology
483 Eng. Nishal Samarasekara Senior Lecturer - Department of University of Moratuwa
Transport & Logistics Management
484 Dr. ( Mrs ) Eresha Mendis Senior Lecturer - Department of Food University of Peradeniya
Science & Technology
485 Dr. Udayanga Galappaththi Senior Lecturer University of Ruhuna
486 Dr. D.H.N. Munasinghe Professor University of Ruhuna
487 Mr. Chandana Dissanayake Managing Director Variosystems ( Pvt ) Ltd
President Sri Lanka Electronic Manufacturers and Exporters
Association
488 Mr. K Uthayakumar Secretary Vavuniya District Chamber of Commerce, industry
and Agriculture
489 Ms. Subhashini Abeysinghe Head of Economics Verite Research
490 Ms. Hasna Munas Research Analyst Verite Research
491 Mr. N.C. Illangarathne Managing Director Virco International ( Pvt ) Ltd
492 Mr. Madu Ratnayake Executive Vice President VirtusaPolaris
493 Mr. E. Vijithan Asst.Director Vocational Training Authority of Sri Lanka
494 Dr. Sarath Obeysekara Executive Vice President / Chief Walkers Colombo Shipyard ( Pvt ) Ltd
Executive Officer
495 Mr. Nimal Gunawardane General Manager Walkers Colombo Shipyard ( Pvt ) Ltd
496 Dr. Lalith Samarakkody    
497 Mr.Chamila Silva Sales & Marketing Engineer Walkers Colombo Shipyard ( Pvt ) Ltd
498 Ms. Rifa Musthapha Past Chairperson Women’s Chamber of Industry and Commerce,
Sri  Lanka ( WCIC ) 
499 Ms. Chathuri P Ranasinghe Chairperson Women’s Chamber of Industry and Commerce,
Sri  Lanka ( WCIC ) 
500 Ms. Eugena Jerome Board Member Women’s Chamber of Industry and Commerce,
Sri  Lanka ( WCIC ) 

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71

No. Name Designation Organization


501 Dr. Vinod K. Goel Senior Consultant World Bank Group
502 Ms.Katarina Consultant World Bank Group
503 Mr. Kavitha Ariyabandu Analysist World Bank Group
504 Mr. Vidura Gamini Abhaya Director of engineering WSO2
505 Mr. Tharmarajah Suresh Chairman / Group CEO Zillione Holdings Pvt Ltd.
506 Capt. A Banerjee Managing Director ZIM
507 Mr. A. Kayansan    
508 Ms. Indira Malwatte Chairperson & Chief Executive Export Development Board
509 Ms. Jeevani Siriwardena Director General Export Development Board
510 Ms. P.K. Sumitrarachchi Addl. Director General - Finance & Export Development Board
Administration
511 Mr. Dammika Jayawardane Addl. Director General - Development Export Development Board
512 Ms. Chitranjali Dissanayaka Director Industrial Products Division
513 Mr. M.K.S.K. Maldeni Director Export Service Division
514 Ms. Dayani Wegapitiya Director Policy & Strategic Planning Division
515 Ms. Malani Baddegamage Director Export Agriculture Division
516 Ms. Anoma Premathilaka Director Market Development Division
517 Ms. Indu Alahapperuma Director Information Technology Division
518 Mr. S.R.P. Indrakeerthi Director Trade Facilitation & Trade Information
519 Mr. K.K. Ruwan Kannangara Director Human Resources Management
520 Mr. K.H.R.P. Fernando Actg. Director Regional Development
521 Ms. Devi Thakshila Wijayaratne Legal Officer Legal Unit
522 Ms. Anoma Karalliyadde Deputy Director Central Province Regional Office
523 Ms. N. S. Narandeniya Deputy Director Export Agriculture Division
524 Ms. S.A.G.Anuradha Deputy Director Export Agriculture Division
525 Mr. C. Amerasinghe Deputy Director Export Services Division
526 Ms. Sepali Jayawardena Deputy Director Industrial Products Division
527 Mr. Harsha Pathberiya Deputy Director Industrial Products Division
528 Mr. Saman Sisil Deputy Director Information Technology Division
529 Mr. Prasanna Jayasinghe Deputy Director Market Development Division
530 Ms. Manoja Dissanayake Deputy Director Market Development Division
531 Ms. Achini Weerawardhane Deputy Director Policy & Strategic Planning Division
532 Ms. Kumudinie Mudalige Deputy Director Regional Development Division
533 Mr. Anura Wickramasekara Deputy Director Southern Province Regional Office
534 Ms. Chandani Ratnayake Deputy Director Trade Facilitation & Trade Information Division
535 Ms. Gayani Wijayathilake Assistant Director Export Agriculture Division
536 Ms. Inoka Nilmini Wanasinghe Assistant Director Export Agriculture Division
537 Ms. Thilini Upadya Assistant Director Export Agriculture Division
Wimalagunasekera
538 Mr. Akila de Zoysa Assistant Director Export Services Division
539 Ms. Vajira Kularathna Assistant Director Export Services Division
540 Ms. K Irugalbandara Assistant Director Trade Facilitation & Trade Information Division
541 Ms. Chathurangi D.S. Assistant Director North Western Province Regional Office
Nuwarapaksha
542 Mr. Sanjeewa Rathnasekara Assistant Director Policy & Strategic Planning Division
543 Ms. S. N. Tharangani Assistant Director Policy & Strategic Planning Division
544 Ms. Rukshanie Vidyaratne Assistant Director Policy & Strategic Planning Division
545 Ms. Dhanushka Ruwanpathirana Export Promotion Officer Export Services Division

[ Appendices ]
72

No. Name Designation Organization


546 Ms. Nipuni Munasinghe Export Promotion Officer Export Agriculture Division
547 Mr. Yohan Silva Export Promotion Officer Export Agriculture Division
548 Ms. Anuradha Rajapaksha Export Promotion Officer Export Agriculture Division
549 Mr. Dinesh Attanayake Export Promotion Officer Export Services Division
550 Ms. Fathima Muneera Export Promotion Officer Monitoring Unit
551 Ms. W.M. D. U. Bandara Export Promotion Officer National Organic Control Unit
552 Ms. Iresha Chuturanganie Export Promotion Officer Policy &Strategic Planning Division
553 Ms. Shavindya Sumanasekara Export Promotion Officer Policy &Strategic Planning Division
554 Ms. Nilani Rathnayake Development Officer Export Services Division
555 Ms. Mangala Madhuwanthi Development Officer Industrial Products Division
556 Mr. Rashaad Officer In Charge Jaffna Regional Office

Photo: ITC

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


73

APPENDIX 2 : 2018 NATIONAL BUDGET ACTIVITIES


CONTRIBUTING TO THE NES
Applicable to Lead
Items from 2018 National Budget contributing to NES Indicative value
NES, Sector or implementing
implementation ( Rs. )
TSF agency
49. To strengthen the eco-certification programme to facilitate access to Spices and P F&B Department of 25 Mn
export markets. Agriculture
53. …upgrade the Department of Meteorology with the state of the art NQI Department of 200 Mn.
technology and elevate the capacity of the personnel. Meteorology
( MUSSD )
55. We will also exempt NBT on the import of selected equipment including Spices
greenhouse technology that enables advanced technology agriculture
practices.
56. Backward integrated activities related to agriculture will be taxed at the Spices and P F&B
concessional Income Tax rate of 14 %.
74. Establishment of a Development Bank with an EXIM window, to enable NES Ministry of National 10,000 Mn
the much desired long term financing for our private sector ventures. Until Policies and
the Bank is established, we will continue with the targeted, existing and the Economic Affairs
proposed loan schemes. ( See : Development Bank Act )
80. We will also establish a SME Guarantee Fund which will further augment IT-BPM -Do- 500 Mn
the SMEs’ capacity to borrow given that it will be considered as collateral. All NES sectors
84. The SME Guarantee Fund will be extended to the “IT Initiative” and the
exporters who require support, as well.
92. The proposed SME Guarantee Fund will enable SME Exporters who are
in the CRIB but have the potential to export, yet has no access to finance its
operations, to access financing from Banks utilizing the SME guarantees.
81. “Erambuma Credit Scheme” which supports the startups with a credit All NES sectors EDB 25 Mn
facility of Rs. 1.5 million per annum per idea per person with a Government
Guarantee. The “Erambuma” Credit Scheme
82. Will launch, the “IT Initiative”, which is in effect the Government’s angel IT-BPM EDB 300 Mn
fund for the IT industry. This initiative will be operated through the EDB and we
will invest Rs. 3 billion in the next 5 years to support :
• The local startups and to attract foreign startups,
• Small and Medium sized IT Companies, and
• Create the enabling environment by supporting establishment of Incuba-
tors, supporting the acquisition and augmentation of skills and knowhow in
collaboration with the local universities etc.
83. The “IT Initiative” will at the outset finance the following :
• 50 % of the Rent expenditure for 24 months on the Hatch Incubator and
similar support to any such private ventures in the future, as well.
• The Universities of Colombo and Moratuwa and, SLIIT will conduct training
courses on Artificial Intelligence, Robotics, Data Science, Machine Learn-
ing, Python Development etc. in collaboration with the industry. Employ-
ment for those who successfully follow such courses will be guaranteed
by the private sector. The cost of these courses will be shared between the
industry and the proposed “IT Initiative”.
85. The para-tariffs applicable on the tariff lines which do not at present carry NES Ministry of Finance
any Customs duties will be abolished within the next 3 years, in keeping with & Mass Media
our policy of liberalizing and globalizing.

[ Appendices ]
74

Applicable to Lead
Items from 2018 National Budget contributing to NES Indicative value
NES, Sector or implementing
implementation ( Rs. )
TSF agency
88. We will introduce an “Export Market Access Support Programme” All NES sectors EDB 800 Mn
targeting the extension of support to :
• local companies that already have exports of less than USD 10 million per
annum.
• potential new entrants to the export market to better access the global
value chains.
• meeting of the cost of compliance which includes the cost of provision of
free samples, intellectual property registration, insurance and promotional
costs undertaken overseas.
• meeting of the full or partial cost of rent of retail shop space or shelf space
occupied by domestic brands that reach overseas markets for a maximum
period of 36 months.
• Product development assistance to exporters to develop new products
or improve existing products to meet the export market standards and
financial support will be provided through the “Enterprise Sri Lanka” Credit
schemes.
93. National Quality Infrastructure, the testing facilities at the Industrial NQI ITI/SLSI/NARA/ 250 Mn
Technology Institute ( ITI ), SriLanka Standards Institution ( SLSI ), National NQC
Quarantine Center, National Aquatic Research Agency and similar agencies
will be upgraded to be on par with international certification bodies. This will
facilitate our products to be acceptable in the global markets and to facilitate
the proposed import inspection and facilitation scheme.
94. The National Intellectual Property Office will also be upgraded and better NES, Spices -Do- 25 Mn
resourced.
95. In order to meet the growing demand and to facilitate Business to NES BoI
Consumer e-commerce transactions ( B to C ), the BoI and the Customs Logistics DoC
Department will establish a procedure by 1st January 2018, to effect such
transactions.
96. Logistics hub : which includes front end services, Multi Country Logistics SLPA, BOI,
Consolidation, Warehouses, Entrepot Trading and Off Shore Businesses NES Customs
which have immense potential. However, if we are to exploit this potential
in full, certain amendments to regulations will have to be effected. Such
amendments will consist of the liberalization of the existing investment regime
with the inclusion of working capital, expansion of designated areas and
introduction of updated operating guidelines.
97.
• SriLanka Ports Authority Act, No. 51 of 1979 and the Merchants Shipping
Act, No. 52 of 1971 will be amended to cater to the demands of the modern
day logistics and marine industry.
• An independent Ports regulator will be introduced.
• Restrictions on the foreign ownership on the shipping and the freight for-
warding agencies will be lifted. This will enable major international shipping
lines and logistics operators to base their operations in SriLanka.
98. The Government will drive a comprehensive “Multi-National Corporation EEC EDB 25 Mn
Outreach” programme ( MNC Outreach ) to attract global Electronic and
Electrical Machinery ( EEM ) players into the country to create value chain
linkages or joint ventures with SriLankan EEM exporters.
100. The EDB, supported by institutions such as SriLanka Customs, TIP EDB 25 Mn
Department of Commerce etc., will establish a trade portal ( E Export
Promotion portal ) that will allow the exporters to access reliable trade
information on time and trade promotional tools including trade statistics,
regulatory requirements, export/import procedures etc.
101. The COSTI will be converted into the National Science Technology & NES Ministry of Science, 25 Mn
Innovation Coordinating Authority ( NASTICA ) which will be dedicated to I&E Technology and
convert research into commercial ventures Research

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


75

Applicable to Lead
Items from 2018 National Budget contributing to NES Indicative value
NES, Sector or implementing
implementation ( Rs. )
TSF agency
102. “Innovators to Industry ( I2I )” initiative. I&E Ministry of Finance
The “I2I” aims to connect university graduates and NVQ 4 certified graduates and Mass Media
for a registered patent or a viable business idea with the industry. ( Industry will
adopt the Innovator ).
The Government will bear :
• the monthly salary, i.e., 50 % up to a maximum of Rs. 50,000 per month for
a period of 24 months, and
• the cost of patenting in Sri Lanka and counsel on patenting
103. PDE initiative through the Mechatronic Enabled Economic Development EEM Ministry of Science, 350Mn
Initiative ( MEDI ) which will consist of the shared services in Standards, IT-BPM Technology and
Training, Prototyping and Test Facility ( SPTF ) and the Long Term Loan Facility BB Research
( LTLF ).
105. The boat building industry has been identified to have significant BB EDB 100 Mn
potential as an export industry while paving the way for nautical tourism. As
such, we will introduce the necessary regulations to facilitate this industry to
grow, including the introduction of a system for standardization and quality
assurance and, will also create dedicated industry zones in Trincomalee and
Koggala, facing the waterfront. We will exempt the upfront payment of NBT
and PAL applicable on the sale of yachts built by BoI companies to the local
BoI charter companies.
106. The country still has a competitive advantage in the spice and Spices -Do-
concentrates industry. Our support will be as follows :
107. Stringent regulations will be imposed to ensure good quality products
protecting the SriLankan identity.
108. The Cinnamon and the Pepper industry will be supported for value Spices Ministry of Primary 50Mn
addition and to increase production, by providing incentives to increase the Industries /
production of high quality planting materials in 1,000 nurseries. Department of
Export Agriculture
109. Activities will be strengthened at the Cinnamon Training Collage. Spices EDB 50Mn
128. The para-tariffs imposed on certain imported food and beverages will be
removed. ( The list is included in the Technical note ).
138. The EDB together with the SLTDA will invest in the development of a PF&B Ministry of Tourism
“Branding SriLanka Cuisine” initiative. NES Development &
Christian Religious
Affairs
146. We will also introduce av integrated Land Registry ( eLR ), digitized 45 NES ( land bank ) Ministry of Lands 150Mn.
Land Registers, & Parliamentary
Reforms
146. We will also introduce and establish a National Single Window NES Ministry of 325Mn.
connecting 31 State agencies with the Customs Department. Logistics Development
Strategies and
International Trade
151. If “Enterprise SriLanka” is to succeed, … NES Ministry of National 2,500Mn.
• “Market Oriented Vocational Training” IT-BPM Policies and
• Invest in developing vocational training institutions to develop high quality BB Economic Affairs
market oriented training programmes. EEC
Supported by “Employment Preparation Fund” Logistics
Wellness Tourism
176. Will support the Colombo University’s initiative to collaborate with the IT-BPM Ministry of Higher 250Mn
industry needs and venture into new streams such as Data Science, Big Data Education &
analytics, Actuarial studies, Business analytics etc. Highways
177. The Vavuniya Campus of the Jaffna University will also be strengthened
to include a state of the art library facility and an IT center.
206. A comprehensive food hygiene and food safety system will be developed NQI Ministry of 25Mn
in collaboration with the relevant line agencies. P F&B Health, Nutrition
Spices & Indigenous
Medicine

[ Appendices ]
76

Applicable to Lead
Items from 2018 National Budget contributing to NES Indicative value
NES, Sector or implementing
implementation ( Rs. )
TSF agency
269. The Government will support, by way of grants, selected small industries P F&B Ministry of 1,000Mn
throughout the Northern Province by empowering the vast network of Spices Prison Reforms,
Producer Cooperatives in the Province. Rehabilitation
Resettlement and
Hindu Religious
Affairs
270. We will also establish 2 food processing centers in Delft Island and P F&B Ministry of National 40Mn
Kilinnochchi, specializing in Sap based produce such as Palm Juggery, Integration and
Palmyra fruits and Tuber processing, respectively. Rehabilitation
285. The Consumer Affairs Authority will be strengthened to protect the NQI Consumer Affairs
consumer from price and quality manipulators Authority
287. We will introduce new legislation to replace the 148 year old Customs NES Customs
Ordinance to meet our commitment to liberalize trade with the necessary Logistics
safeguards. In line with the objective of ensuring a paperless clearing system,
acceptance of digital signatures for electronic documents will be in operation
soon.

Photo: © advantis.world

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


77

APPENDIX 3 : GOVERNANCE OF THE NES DESIGN PROCESS


The following governance structure is proposed to ensure a
good balance of views and perspectives between the public
and private sector institutions that have a bearing on trade
performance.

Cabinet Council on Economic Management NES Secretariat – EDB

ƒƒ Provide high-level guidance relating to the overall NES ƒƒ Support the NES Navigator and Core Team for successful
design and implementation process. completion and endorsement of the NES.
ƒƒ Collect, centralize and preserve all archives and docu-
NES Navigator – State Minister of International Trade mentation related to the NES design process.
ƒƒ Identify and mobilize relevant public and private stake-
ƒƒ Lead the process of NES design. holders to be involved in the design of the NES.
ƒƒ Ensure the process is highly consultative, with con- ƒƒ Organize national, sectoral and regional meetings re-
tinued communication with and between all relevant quired to ensure an inclusive and participative NES de-
stakeholders. sign process.
ƒƒ Secure the engagement of the public sector, private sec- ƒƒ Organize communication and outreach efforts to promote
tor and civil society representatives. the NES as a key driver for national development.

NES Core Team – senior public and private sector rep-


resentatives

ƒƒ Play a thorough leadership role throughout the design of


the Strategy.
ƒƒ Conduct targeted, focused group meetings to review the
Strategy design progress and provide regular feedback
to the NES secretariat.
ƒƒ Review and confirm strategic orientations to guide the
NES design process.
ƒƒ Ensure that the final Strategy document encapsulates the
interests of stakeholders.
ƒƒ Create visibility for and champion the Strategy at the na-
tional level throughout the process.
ƒƒ Consult national stakeholders and interact with high-level
authorities, as a way to achieve the required buy-in of
stakeholders and Government.
ƒƒ Support targeted advocacy and resource mobilization ef-
forts for Strategy endorsement and implementation.

Photo: Alexandra Golovko (ITC)

[ Appendices ]
78

APPENDIX 4 : SECTOR SELECTION METHODOLOGY


The NES export potential assessment combined findings incorporates similar analysis of what Sri Lanka is best at
from key international institutions that have analysed op- exporting. The methodologies differ in their assessment of
portunities for increasing export growth of Sri Lanka. competitive advantage ; in particular the treatment of oppor-
There were overlaps in the findings of these various stud- tunities for emerging or infant industries, and the emphasis
ies, namely because each methodology, while distinct, on factors such as market access and growth dynamics.

Various approaches to determining export potential

The Harvard Centre for International Development, Commonwealth into new industries due to the sophistication of existing
Secretariat and ITC have all employed statistical techniques to de- industries.
termine the export potential of Sri Lanka’s industries. The findings • The Commonwealth Secretariat assesses existing flows and,
overlap for some industries but differ for others. A brief explanation based on this, looks at extending the flows into new markets
of each is provided below. or intensifying trade in existing markets.
• The Centre for International Development focuses on existing • ITC analyses the dynamics of growth and performance of
trade patterns to explain the ability of a country to move trade, but also market access conditions, and also uses a
product space approach for moving into new sectors.

Table 1 : Number of products identified per sector at Harmonized System 6 level with export potential
Commonwealth Harvard Centre for International
Sectors ITC
Secretariat Development
Tea 2
Rubber and rubber-based products 3 7 3
Apparel and textiles 13 2 17
Fisheries 3 2
Fruits, vegetables, crops 2
Electronics and machinery 5
Insulated wires 4
Printed circuit boards 3
Diamonds, gems and jewellery
Coconut-based products 1 2
Spices and essential oils 2 2
Boating industry 2 7
Food, feed, beverages 2 2
Chemicals and plastics 2 3
Wood, toys, gifts, handicrafts and handloom 1 1
Footwear and leather 1
Ceramics, porcelain, glass, sands, metals and minerals 5 3
Other products 3 3 3
Paper, printing and packaging

Source : ITC ; Harvard Centre for International Development ; Commonwealth Secretariat, 2016.
Note : The numbers in the table represent the number of products identified as having export potential at the Harmonized System six-digit
level. No numbers mean no products were found to have a potential in that sector.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


79

Table 1 highlights the number of subsectors in each sector


that are found to have high untapped export potential ac-
cording to the methodology used.

Due to limitations in availability of international trade data,


it is not possible to complete export potential assessments
for services. As indicated above, services represent a fast-
growing segment of Sri Lanka’s exports but few have con-
firmed export trends and sufficient maturity to support export
development in the next five years. Based on this, the fol-
lowing services sectors were also considered in the short-
listing process :

Construction Information and Engineering


services communications technology services
Educational Wellness and medical Professional
services services / tourism services

In addition to the export potential analysis, extra indica-


tors were considered for sector selection, such as a sec-
tor’s ability to meet national policy and socioeconomic
objectives. Through an inclusive and consultative process,
public and private stakeholders involved in Sri Lanka’s ex-
port development provided their assessments of weights
to be given to each criterion. They then assigned scores to
each of the dimensions considered ( ranging from 1 ( low ) to
3 ( high ) ) to the 27 potential sectors ( goods and services ).
The overall calculation of ranks was then computed using
the weighted average scores provided per sector, as well us- Photo: ITC
ing an average ranking index to avoid biases in the weigh-
ing of criteria. Both calculations were used to determine the
sectors with the highest ranking.

ADDITIONAL CONSIDERATIONS
CRITERIA USED IN THE SECTOR FOR FOCUS SECTOR SELECTION
SHORTLISTING EXERCISE
In addition to the above parameters, the public–private
stakeholders at the NES first symposium in April 2017 were
Summary of criteria used Additional criteria used asked to consider the following dimensions when ranking
by the export performance in the public–private
sectors.
assessments consultative process

• Current / past export perfor- • Alignment with the Govern-


mance ment’s development agenda A mixed portfolio of sectors
• Global import demand, • Potential for attracting invest-
including share of a product ment / technology upgrading
in total demand and value addition
The portfolio of focus sectors supported by the NES should
• Market access conditions • Social integration considera- reflect the potential and existing capacity within Sri Lanka. As
( tariffs, distances ) tions – regional development, such, the goal was a balance between agricultural, manufac-
• Percentage of unused poten- gender and youth integration turing and service sectors, with added emphasis placed on
tial ( per specific markets ) and • Environmental sustainability those industries that are emerging in global markets. Finally,
supply capabilities • Medium-term outlook for ad- due consideration was made to include visionary ( future )
• Revealed comparative ad- dressing the key constraints
vantage in the sector sectors, emerging ( infancy ) sectors and mature ( tradition-
• Product space analysis • Links and spillover effects al ) sectors.
• Stability of export revenue with other priority sectors
( qualitative )

[ Appendices ]
80

Figure 24 : Mixed portfolio of sectors with maturation time frame

Visionary sectors Emerging sectors Mature sectors


e.g. Boating industry, EEC e.g. Wellness tourism, e.g. Spices, IT-BMP
processed food
M
Build-up of capacity and maturity NES 0-5 years
1. Require significant institutional M
support
2. Limited sector organization
3. Limited export activity (apart from Graduation of already mature
select individual firms) E sectors
4. Trade support functions of NES NES 0-5 years 1. Largely self-sufficient in terms of
will assist sector firms to market and product diversification
graduate to emerging sector
E 2. Highly organized sector
Rise in maturity + sophistication 3. Mostly reliant on quality of
status’
1. Requires steady institutional business environment to succeed
support
2. Medium/significant levels of
structural adjustments to the
value chain
V 3. Medium level of sector organiza-
tion
V NES 0-5 years 4. Increasing export activity and new
market penetration

The Strategy implementation time frame also strategies are driven by strong private sector ownership and
dictates the sectors to be included build on the sectors’ competitive advantages.29 While these
sectors are the backbone of Sri Lanka’s export performance,
The NES is a medium-term strategy as far as the vision innovation and export diversification are needed to comple-
and strategic objectives are concerned, with strategic PoAs ment these existing star performers.
framed to be implemented in five years. As such, the NES
needs to be focused on a few sectors that can be effec-
tively upgraded during the implementation period. The next Contribution to innovation and export diversification
NES – after the five-year time frame has elapsed – will al-
low the selection of new focus sectors that became ripe for This NES provides a road map towards a more innovative,
export growth. diversified and resilient export sector through the promotion
of focus sectors that do not yet contribute significantly to
Sri Lanka’s exports but have high potential to achieve inter-
Institutions must evolve in parallel national competiveness over the coming five years. This is
also in line with the vision and the fourth strategic objective.
Institutions remain fundamental to the success of any sec- Sectors that are active in R&D and innovation can function
tor development. Sectors that are better organized through as best practice examples for other sectors.
unions, cooperatives and sector associations stand a better
chance of steering the NES implementation to ensure the tar-
gets are achieved. The presence of organized support pro-
vides a favourable framework to build consensus and bring
the sector to the next level of sophistication. 29.– The rubber sector has the Sri Lanka Rubber Industry Master Plan
2017–2026 and the textiles sector is currently in the process of developing
its own new sector strategy. Similarly, the coconut product industry has
its own sector Strategic Plan 2016–2020 supported by the Coconut
No replication of existing strategies Research Institute. Moreover, many products belonging to the coconut
product sector, such as coconut oil and desiccated coconut, are covered
Established export sectors such as apparel, tea and rubber in the Processed Foods and Beverages Sector Strategy. Other important
sectors with high export potential, such as the fisheries sector, are already
have proven their ability to compete in world markets. Their receiving strong support to develop strategically.

[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


81

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[ NATIONAL EXPORT STRATEGY OF SRI LANKA ]


Ministry of Development Strategies Sri Lanka Export Development Board
and International Trade

exporter’s association
of sri lanka

Developed as part of the EU-Sri Lanka Trade-Related


Assistance project, funded by the European Union (EU)

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